Arab Finance: Qalaa Holdings plans to use proceeds from its capital increase to strengthen its capital structure and financial solvency while reducing the burden and risks associated with accumulated debt, according to a bourse filing.
The feasibility study showed that the proceeds would enable the company to repay EGP 1.93 billion in debt, equivalent to 50% of its total outstanding arrears owed to the Arab International Bank and Egyptian banks.
Moreover, the proceeds would help secure anticipated debt waivers totaling EGP 9.5 billion, reinforcing the company’s financial position.
The targeted capital increase amounts to EGP 3.867 billion through the issuance of 773.536 million shares at a par value of EGP 5 each. This would raise the issued and paid-up capital from EGP 21.132 billion to EGP 25 billion.
In September, the company’s extraordinary general meeting (EGM) approved the continuation despite registered losses, as incurred losses exceeded half of shareholders' equity.
