Nampak’s ZAR 1B Rights Offer Triumph

  • Nampak successfully raises ZAR 1.0 billion in a rights offer, exceeding expectations with 138% demand for new shares.
  • Shareholders will receive share certificates or see their accounts credited, while directors participated in the offer.
  • The strategic move is facilitated by financial advisors PSG Capital and legal counsel Edward Nathan Sonnenbergs Inc.

In a significant financial development, Nampak Limited has successfully completed its rights offer, raising an impressive ZAR 1.0 billion in capital. The South African packaging company’s strategic move to bolster its financial position has garnered substantial interest from shareholders and investors.

Demand Surpasses Expectations

The rights offer, which was detailed in announcements made on the Stock Exchange News Service (SENS) in August 2023, aimed to raise the substantial sum of ZAR 1.0 billion. Nampak’s intention was to achieve this through a partially underwritten renounceable rights offer to qualifying shareholders, offering 2.20902 rights offer shares for every 1 ordinary share held on the record date, which was set as Friday, 8 September 2023.

The outcome of the rights offer exceeded expectations, with gross demand reaching an impressive 138% of the available rights offer shares. This strong response underscores investor confidence in Nampak’s strategic direction and its potential for growth in the packaging industry.

Rights Offer Results at a Glance

Here’s a breakdown of the results of Nampak’s rights offer:

CategoryNumber of SharesPercentage of Total
Rights Offer Shares Available5,714,286100.00%
Normal Take-up (Subscribed)5,147,15190.08%
Excess Applications Received2,774,30648.55%
Total Rights Offer Shares Subscribed For7,921,457138.63%
Rights Offer Shares Issued to Coronation567,1359.92%
Total Rights Offer Shares Issued5,714,286100.00%

Notably, the rights offer garnered significant interest, with almost half of the total subscribed shares coming from excess applications. These excess applications were subject to allocation restrictions, and only 90% of the rights offer shares were available for allocation to shareholders.

Shareholders and Director’s Involvement

Qualifying shareholders who followed their rights will receive their share certificates by Tuesday, 26 September 2023. For those shareholders holding dematerialized shares, their CSDP or Broker accounts will be credited with the rights offer shares, and payments will be debited accordingly on the same date.

Additionally, the announcement detailed the involvement of Nampak’s directors in the rights offer. Glenn Fullerton, a director of the company, engaged in a transaction to raise funds to subscribe for rights offer shares. The transaction involved the sale of rights at prices ranging from R49.00 to R50.25 per security, with a total transaction value of R1,024,538.31. Importantly, clearance to deal was received in accordance with the company’s guidelines.

Another director, Quinton Swart, participated in the rights offer by selling rights on the market. The transaction involved 14,854 securities, with prices ranging from R40.00 to R42.00 per security, totalling R600,502.53. Like Fullerton, Swart also received clearance to deal.

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