Maple Leaf issues right share to finance expansion

Maple Leaf Cement Factory Ltd will issue a right share to partially finance a 7300tpd clinker production line at Daud Khel in Iskanderabad, Mianwali, Pakistan.

According to a statement to the Pakistan Stock Exchange, Maple Leaf's Board of Directors has recommended an issuance of 12.5 per cent right shares by offering 65,966,740 right shares to existing ordinary shareholders a price of PKR65/share (including a premium of PKR55/per share) in proportion of 12.50 right shares for every 100 ordinary shares held.
 
The total project cost is estimated at PKR23bn. The company has established Letters of Credit in favour of FLSmidth to supply the production line. The project is expected to commence trial production in first half of 2019. 

Funds are required to partially finance the expansion project through shareholders’ equity whereas the rest of the project's cost will be met through borrowing and internal cash generation.