Steppe to raise UK£10m in offer

Steppe to raise UK£10m in offer
Published: 15 April 2009

Steppe Cement Ltd  said it planned to offer 40 million shares to raise UK£10m, shortly after the company posted a 50 per cent fall in its full-year profit due to a continued decline in the cement market.

Shares of Steppe Cement rebounded to 32.5 pence at 1013 GMT on the London Stock Exchange, paring the loss from the earlier session when they touched a low of 29.90 pence after the results were announced.

Steppe Cement, which has been impacted by a slowdown in the construction projects in Kazakhstan due to economic meltdown, said the net proceeds would be used to repay a portion of the company’s bank loan.

The offer, at 25 pence per share, represents about 35 per cent of the existing share capital, the company said in a statement.