Bosnia’s RiTE Ugljevik invites investors to subscribe for cap hike

SARAJEVO (Bosnia and Herzegovina), January 2 (SeeNews) - Bosnian coal mining and energy producing company RiTE Ugljevik [BANJ:RTEU-R-A] said it is inviting investors to subscribe for a new share issue planned in the amount of 31 million marka ($16.4 million/15.9 million euro).

The company is offering 31,000,000 ordinary shares of 1 marka in par value each to investors on the Banja Luka Stock Exchange (BLSE), it said in a statement earlier this week.

The subscription period starts on January 8 and will close 30 days later.

The shares are first offered for subscription to existing shareholders on record as of November 4, at a price of 1 marka per share. These shareholders will be able to use their pre-emptive rights for a period of 15 days.

Any unsubscribed shares will then be offered to other interested shareholders. The price for these shares will be set on the stock exchange, according to the principle of multiple prices.

The issuance will be considered successful if at least 60% of the new shares are subscribed for.

RiTE Ugljevik's new share issue is part of a plan to first reduce and then increase its equity capital in order to cover losses and form legal reserves. RiTE Ugljevik in early December decreased its capital to 67.7 million marka from 256 million marka to cover 181.6 million marka in losses and form legal reserves of 6.8 million marka.

The company's current share capital is divided into 67,689,115 shares of 1 marka in par value each.

Its shares last traded on the Banja Luka bourse on November 15, when they closed flat at 0.014 marka.

(1 euro = 1.956 marka)