Truworths renounceable rights offer attracts 90,1pc share uptake

LISTED clothing retailer Truworths Limited Renounceable Rights Offer attracted 90,1 percent share uptake raising $2,2 billion in additional working capital.

The Renounceable Rights Offer which closed on 9 August saw 345 971 161 shares on offer being taken from 384 067 512 on offer.

Shareholders gave the firm the nod to proceed with the Renounceable Rights Offer at the Extraordinary General meeting held on 4 July.

The capital raising was through a Renounceable Rights Offer. A renounceable right is an offer issued by a corporation to shareholders to buy more shares of the company’s stock usually at a discount.

Based on a recent circular to shareholders, the Board engaged an existing shareholder, Mega Market (Private) Limited to underwrite the Renounceable Rights Offer.

Mega Market has a shareholding in Truworths of 28,66 percent of the total issued share capital.

In an update, the company said the percentage taken by the underwriter was 9,9 percent representing 38 096 351 shares.

In a recent circular to shareholders, the listed entity said if the Renounceable Rights Offer is not implemented, the company will face severe cash flow constraints, high finance costs and reduced working capital.

Truworths Limited is a company incorporated and domiciled in Zimbabwe whose shares are publicly traded. Its core business is the retailing of clothing, footwear, textiles and accessories.

As at April 2023 the Group had a total of 46 stores nationwide, with over 11 577 square metres of store space.-chronicle