The proceeds from the Myanmar-based investment holding company will be used to finance corporate growth and expansion of company projects including the Thilawa Special Economic Zone (SEZ), in which FMI is committed to subscribing between 5 and 9 percent of the Myanmar consortium. The Thilawa SEZ is a 2,400-hectare site situated adjacent to the Thilawa port in Thanlyin Township, Yangon.
Other projects include expanding existing operations in the tourism and automobile divisions, building up FMI Air following the granting of a temporary air operator’s certificate, as well as additional investment in Grand Meeyahta International Hotel Ltd, a 10-acre mixed used property development in the heart of downtown Yangon. The Grand Meeyahta development is comprised of two hotels, two office towers, a retail shopping mall, a service apartment and a high-end condominium.
The funds will also be used to help increase the paid-up capital of Yoma Bank by an additional Ks 10 billion to 15 billion over the next year. FMI, which owns 35.6 percent of Yoma Bank, intends to contribute Ks 3-5 billion.
The rights issue will result in the issuance of 2.5 million new ordinary shares at the price of Ks 10,000 each. This represents a discount of approximately 20 percent from the current price for FMI shares. Shareholders will get first priority to subscribe to the shares, which will be available from November 25 to January 8 next year, in accordance with Article 105 (C) of the Myanmar Companies Act. Shareholders will be entitled to subscribe to one new share for every six existing shares held, and are also entitled to apply for additional shares.
Shares that are unsubscribed may be open for application to the public on January 9 next year, in accordance with Article 93 (3) of Myanmar Companies Act. The allotment of the new shares is expected to take place one week after closing of subscription and will entitle their holders to any dividends for 2013-2014 fiscal year. The sale of these new shares is only available for Myanmar nationals.
“Our economy is on the cusp of a significant boom, a period of exponential growth that may not be easily repeated in the decades to come. It is therefore our corporate strategy to proactively expand our existing operations and initiate start-ups in the next two to three years. To do so, we will need to strengthen our capital base and top up our war chest very quickly,” said Theim Wai, chairman of FMI.
The placement of 2.5 million new shares will be fully underwritten by SPA Myanmar for a fee of 2 percent.
“The assurance of capital ensures that our strategic corporate plans can be implemented on a timely basis”, said Theim Wai, who is also the chairperson of SPA Myanmar.
Established in 1992, FMI is one of Myanmar’s first publicly-owned corporations with more than 5,000 individual shareholders. The company’s first foray in the property sector was the development of FMI City in the early 1990s. FMI entered the financial sector when it established one of the country’s first private banks, Yoma Bank, in 1993.
source: Eleven Myanmar
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