Summit Bank boosts paid up capital

The newly established Summit Bank has increased its paid up capital to Rs8.7 billion by raising over Rs1.45 billion through issuing 145 million right shares to its existing shareholders, the stakeholders at Karachi Stock Exchange (KSE) were informed.
According to a KSE notice, KSE/N-3502, the bank had received an aggregate subscription amount of Rs1,450.131 million up to June 21. The bank accumulated the additional money against the issue of 145,013,196 right shares, each having a face value of Rs10 as approved in the bank’s Board of Directors meeting on December 20 last year.
A break up of the acquirers of right shares shows that 856.457 million shares had been acquired by the Suroor Investments Limited, 593.516 million by the underwriters and 158,262 shares by other shareholders. The previous paid up capital of the bank stood at Rs7.25 billion with its ordinary shares accounting for 725.065 million.
After latest issue, the bank’s paid up capital had swelled to Rs8.7 billion with its ordinary shares totaling at 870.079 million. The bank has asked the KSE management to notify these updates to the Central Depositary Company in terms of procedures prescribed by the CDC for shares upload.
A rights issue is an issue of additional shares by a company to raise capital under a seasoned equity offering. The rights issue is a special form of shelf offering or shelf registration. With the issued rights, existing shareholders have the privilege to buy a specified number of new shares from the firm at a specified price within a specified time.