TOL goes for right issue for 4.5bn/-

TOL Gases, industrial and medical gases manufacturer, wants to raise 4.5bn/- through right issue in a bid to increase its output.

After successful business last year, the company offers 18.6 million shares at a discount rate of 240/- a piece. The current bourse price has reached 310/- a share as of last week after appreciating by almost 20 per cent since January.

The initial primary price was 550/- over a decade ago. Tanzania Securities said the offer opened last week and expected to be closed at the last day of this month where shareholders are entailed to buy one share for every two existing shares held.

“The offer is open to all existing shareholders of TOL whose names appear on the shareholders’ register at the closure of register on 22nd November 2013,” Tanzania Securities said in a statement.

This is the second right issue after the first was conducted almost ten years back. 

According to the TOL prospectus, the fund obtained will be used to do major refurbishment of the ASPEN 1000 plant and finance the purchase of other associated equipments, as well as the commissioning of the Argon plant.

Argon is the third most common gas behind carbon dioxide and neon. It is produced industrially by the fractional distillation of liquid air and is mostly used as an inert shielding gas in welding and other high-temperature industrial processes.

The gas is also used in incandescent and fluorescent lighting and other types of gas discharge tubes.
Source: Daily News, reported by Abduel Elinaza from Dar es Salaam, Tanzania
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