Investcorp to Issue 400,000,000 additional ordinary shares

The board of directors of Investcorp have invited existing ordinary shareholders to exercise their pre-emptive rights over 400,000,000 ordinary shares for an issue price of US$1.75 per share. The issue has been underwritten by a group of prominent strategic underwriters.

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By  Massoud Derhally Published  November 25, 2002

Investcorp, the global investment group, will issue 400,000,000 additional ordinary shares. The board of directors of Investcorp have invited existing ordinary shareholders to exercise their pre-emptive rights over 400,000,000 ordinary shares for an issue price of US$1.75 per share. The issue has been underwritten by a group of prominent strategic underwriters.

Investcorp is raising additional capital to provide a strong financial platform that will support the growth of each of the firm’s four lines of business, in line with the company’s strategic plan to maintain its position of global leadership in the field of alternative investments.

Nemir A. Kirdar, president and chief executive, labelled the rights issue as the first step in the next phase of Investcorp’s development and growth. “As we progress into the 21st century, Investcorp is ideally positioned to take advantage of opportunities arising from the increasing globalisation of financial markets and investors worldwide. The additional capital provided by this rights issue will further cement Investcorp’s solid reputation and track record, and will help it emerge as a powerful global manager of alternative assets with an international reach”, he said.

The 400,000,000 additional shares will initially be available in a rights offer to Investcorp’s existing ordinary shareholders, whose names appear in its shareholder register as of the record date of 29 November 2002. The subscription period will begin on 30 November 2002, closing on 15 December 2002. During this period, each ordinary shareholder will be able to exercise the right to purchase one new share for each existing ordinary share owned as of the record date. Shares that are not purchased by ordinary shareholders during the rights offer period, will subsequently be purchased by an underwriting group.

The rights offer price of US$1.75 per share takes into consideration various market conditions and other factors, including the recent eighteen-month rolling average share price, net book value inclusive of fair market value adjustments on the firm’s investment portfolio, peer comparisons; and the valuation derived from a discounted cash flow analysis.

Investcorp’s ordinary shares will be suspended from trading on the Bahrain Stock Exchange from November 30 to December 24, 2002 or later, until all of the required procedures for the subscription are completed. There will be no suspension in trading of Investcorp’s preference shares.

An Extraordinary General Meeting of the shareholders of Investcorp will be held in the Kingdom of Bahrain on December 21, 2002 to ratify the underwriter’s allocation and pricing.

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