KARACHI: In a bid to receive huge capital to gain long-term growth objectives, Silk Bank has entered an underwriting arrangement with Arif Habib Limited and the rights issue is expected to be completed in the next 45 days.
According to a statement, the bank took the decision as part of its capital-raising initiative through the recently announced Rs10 billion rights issue. The State Bank of Pakistan (SBP) has given final approval to Silk Bank for the issuance of right shares.
The bank will issue over 6.4 billion right shares at Rs1.56 per share, reflecting a discount of Rs8.44 per share. In most cases of right share issues, cash-starved companies give their existing shareholders a right to purchase newly-issued shares of the company at a discount to the share price prevailing in the stock market.
Silk Bank has already received Rs2 billion as advance against shares in the subscription account, assuring the completion of the issue and increasing the capital base of the bank to Rs16 billion.
