September 18, 2020 (MLN): Pakistan Stock Exchange has notified the listing of Perpetual, Cumulative and Convertible Preference Shares of Power Cement Limited with effect from Monday, September 21, 2020 issued by way of right offer to the existing ordinary shareholders of the company.
According to a notice issued by the PSX in this regard, the trading in the Preference Shares of the company will commence on the Exchange’s Main Board from the same date and shall be settled on a T+2 basis. The first settlement date will be Wednesday, September 23, 2020.
Moreover, the Market Lot of the company will be 500 shares of Rs. 10 each.
The shares of the company have already been declared eligible security by the Central Depositary Company of Pakistan, and all the transactions shall be settled through the National Clearing Company of Pakistan. NCCPL has assigned the Preference Shares the Security Symbol of “POWERPS”.
The opening price of the Preference Shares of the company will be Rs. 10 per share,
On May 21, 2020, Power Cement had announced the issuance of 244 million preference shares as the right issue to existing shareholders which is 23% of current share capital.
It is prudent to mention that the purpose of the Right Issue is to use the proceeds to meet the cost overruns incurred in the expansion of the production capacity at the company's existing site which was embarked upon in April 2017 for adding a new line of 7700 tons per day (2.5 million tons per annum), taking the total capacity to around 3.4 million tons per annum. The project has completed and has started production in December 2019, the notification said.
This expansion with the state-of-the-art European technology plant has enabled the company to produce the world's highest cement quality of 53 Grade with the most cost-efficiency. After the successful commissioning of the new project. the Company has become the second-largest cement producer in the South Region, with a total production capacity of around 3.4 million tons per annum.
The investments by the company/shareholders are always dependent and linked with the market conditions, demand & supply economics, and the overall macroeconomic indicators of the Country.
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