Raysut Cement, Oman, will enter the capital market with a rights issue of five million shares at a price of RO3.000 per share aggregating to RO15 million.
It is believed that the company is in the process of expanding its production capacity by another 1.2Mt. Through the rights issue, the paid-up capital of the company will be increased to RO20 million from the current RO15 million. The Capital Market Authority (CMA) has approved the rights proposal yesterday.
Investors to whom Times Business spoke to said: "Any issue, whether it’s rights or public, its success depends on investors’ confidence. Investors and shareholders always look at the competency of management and board of directors, and not just on the turnover or profitability."
"Raysut Cement’s rights offer is expected to receive overwhelming response from the shareholders," market-men opined.