Oil Marketing company, GOIL, is seeking to raise GH¢173.1 million in Rights Issue, a circular from the Ghana Stock Exchange revealed.
Proceeds from the offer are expected to be used to restructure the company’s capital base and support other identified projects.
Investment firm, Strategic African Securities Limited, is acting as the Sponsoring Broker.
The company says the Renounceable Rights Offer of 139,639,640 ordinary shares of no par value at GH¢1.24 per share will go to existing shareholders.
The offer will be made in a ratio of 0.5536 new shares for every 1 existing share held.
It was approved by the shareholders of the OMC’s at the company’s Annual General Meeting held on May, 29 2014.
Pursuant to section 34 of the Companies Code 1963 (Act 179) and regulation 40(b) of the Ghana Stock Exchange Listing Rules, 2006, the Register of Members of GOIL will be closed to the general public on Thursday, 28 April 2016.
Importantly, the Ex-Rights date has been set for Monday April 25, 2016 and the Qualifying Date set for Wednesday April 27, 2016.
Consequently, only shareholders on the Register of Members of GOIL at the close of business on April 27, 2016, will be entitled to exercise their Rights under the Offer.
Additionally, applications will only be accepted from investors, who have had rights renounced in their favour, subject to the Rules of the Listing Rules of the Ghana Stock Exchange, the terms of the Offer and other applicable laws.
Approval for the Rights Issue was obtained from the Securities and Exchange Commission (SEC) on April 8, 2016.
The offer is expected to open on Tuesday May 3, 2016 and close on Wednesday May 18, 2016.