FESCO Completed Additional Issue of Shares
FESCO Completed Additional Issue of Shares Far Eastern Shipping Company Plc. (hereinafter referred to as FESCO), a parent company of FESCO Transport Group, completed offering a fresh issue in amount of 306 509 000 shares.
FESCO initiated offering procedure on July 23, 2007. Offering price for the individuals with pre-emption right amounted 16,83 Rubles per a share. The existing shareholders reacquired over 256,5 mln. of shares by the above price, that accounted for 83,7 % of the fresh issue.
Fifty mln. of shares priced 17,85 Rubles per share were offered during the second phase of the public additional issue. All the shares had been placed by August 3, i.e. the due date of the offering, stated by the FESCO Board of Directors in the decision of the equity issue.
The additional issue resulted in USD 206 mln. raised by FESCO, including USD 171 mln. contributed by the existing shareholders and about USD 35 mln. sourced from the market as a result of the public subscription.
According to Yuriy Gilts, Senior Vice President for Economics & Finances, «…the fresh issue shares were in rather good demand, we even could not satisfy all the open subscription bids, despite the fact that the equities were offered by the market-orientated price.
The raised funds will be invested both for decreasing of the Company debt load and investment program financing». The additional issue made the FESCO authorized capital increased by 15% amounting to 2 bl. 361 mln. of shares.
The main FESCO shareholders completely exercised their pre-emption right with the Company ownership structure remaining unchanged.
The fresh-issue shares will become marketable as soon as the Company notifies Federal Service on Financial Markets about the offering results.
