First Myanmar Investment Co Ltd (FMI), an investment holding company in Myanmar, has started to issue an additional 250,000 new ordinary shares to the public citing “overwhelming response” from existing shareholders and a “broad interest” from the public.
The company started offering the shares on Thursday last week at a price of K10,000 ($10.15) each, it said in a statement.
On January 8, FMI completed the rights issue of 2,500,000 new ordinary shares at an issue price of K10,000 per shares to existing shareholders. Shareholders were entitled to subscribe for one new ordinary share for every six existing ordinary shares held.
The additional offering will be available for 10 business days, and FMI said the public can place their subscriptions through the FMI Share Department and Trading Centre by 6pm on January 22.
Shares will be allotted on a first come first serve basis and subject to the sole discretion of the board on the allotment, the company said. Proceeds from the additional share issuance will be used to finance corporate growth and expansion of existing businesses of the FMI group of companies, it said.
“Our decision to launch more shares is due to the significant interest from the public, and this is a strong testament to the confidence the market has for FMI’s long-term growth,” said U Theim Wai, chairman of FMI.
“The additional share offer will increase FMI’s market capitalisation and enlarge its shareholder base. It will also provide opportunities for more Myanmar nationals to be part of FMI’s growth and success as we embark on a number of transformational projects in the country.”
The capital raised from the previous rights issue will be used to finance company projects that include the Thilawa Special Economic Zone (SEZ), in which FMI has committed to subscribe for between 5 and 9 percent of the Myanmar consortium.
Other projects include the expansion of existing operations in the tourism and automobile divisions, the building up of FMI Air following the grant of a temporary air operator’s certificate, as well as additional investment in Meeyahta International Hotel Ltd, a 10-acre mixed used property development in downtown Yangon comprising two hotels, two office towers, a retail shopping mall, a service apartment and a high-end condominium.
“We want to further strengthen our cash position so that we can proactively expand our existing operations and create start-up opportunities in the next two to three years,” said U Theim Wai, who is also the chairman of Yoma Bank.
The funds raised from the new share offer will also be used to help increase the paid up capital of Yoma Bank.
Last month, FMI, along with Yoma Strategic Holdings Ltd, formed companies to distribute and service Mitsubishi and Hino vehicles. On the service sector front, plans are underway to construct a 46-room international standard hotel with conference and banquet facilities at Pun Hlaing Golf Estate, FMI said.
U Theim Wai said: “There is vast opportunity in Myanmar in a number of strategic sectors, and our key strength is that we are a partner of choice for many international companies looking to expand into Myanmar.”