The second biggest capital increase on the Bulgarian Stock Exchange (BSE) kicks off today.
Advance Terrafund REIT plans to hike its capital by 66.084 mln leva from 44.056 mln leva to 110.14 mln leva through the issuing of 66.084 mln new shares with 1.90 leva issue value each.
A total of 44.056 mln rights have been issued. The rights and the new shares were issued at a ratio of 1:1.5.
Advance Terrafund's rights will be traded until August 27 under the 6A6A stock symbol. The fund will raise over 125 mln leva if the newly issued stock is subscribed in full.
The auction for the unused rights is scheduled for September 5. The subscription of new shares will be carried out in the period August 14 – September 23.
The capital will be raised only if at least 25 mln new shares get subscribed and paid.
Advance Terrafund will used the proceeds from the capital raise to for its investment projects. The company plans to buy and consolidate land, as well as to settle a 15 mln euro bank loan and to improve its liquidity.
“Advance Terrafund plans to own 45,000 ha of arable land by the end of 2009”, Radoslav Manolov, executive director of the company, told Profit TV.
The REIT currently owns nearly 23,800 ha of arable land and 13 ha of urban land, valued at over 99 mln leva.