National Finance plans RO22mn rights issue


National Finance Company has decided to convene an extraordinary general meeting on December 14 to seek approval from shareholders for raising its paid-up capital to OMR49.68 million from OMR27.93 million by way of a rights issue of 217.6 million shares. The rights share will be issued at a price of 127 baisas, which include a share premium of 25 baisas and an issue expense of 2 baisas, according to a disclosure posted on MSM website. This is subject to approval from regulatory authorities.

The company will also seek approval for issuing perpetual bonds worth OMR18.2 million through private placement subject to regulatory approval and authorising the board to undertake all actions necessary to conclude the transaction including approving the interest rate, the number of investors, amount to be allocated to each investor, and appointment of relevant advisors for the transaction.

Another proposal is to seek approval for increasing the share capital of the company from OMR30 million to OMR75 million and approve the amendment to the Articles of Association.

The EGM will also consider merger by incorporation of Oman Orix Leasing Company SAOG into the company in accordance with the provisions of the Commercial Companies Law.

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