CONSTRUCTION firm Turnall Holdings Limited has successfully raised the equivalent of US$8 million from existing shareholders for expansion programmes.
On June 16 this year, Turnall announced its intention to raise the local currency equivalent of US$8 million to install fibre cement building products production capacity and a plant to produce glass reinforced pipes.
To do this, a renounceable rights offer of 4 930 403 080 ordinary shares of a nominal value of ZWL$0,01 each was proposed, at an offer price of ZWL$9,70 per share. This was based on issuing 10 new ordinary shares for every ordinary share in issue as at the record date.
Turnall yesterday said the US$8 million had been raised.
“At the time when the Turnall Holdings Limited rights offer circular was published on 16 June 2023, US$8 million was equivalent to ZWL$47 824 909 876 but with the strengthening of the ZWL during the period of the rights offer the equivalent ZWL amount became ZWL$36 456 000 000 by the time of the closing of the rights offer on 16 August 2023,” Turnall said.
“The rights offer raised an amount of ZWL$36 947 466 150,23. The rights offer has raised the ZWL equivalent of US$8 million and the company has accordingly not required the underwriter to subscribe for any shares in the company. The company has agreed with the underwriter for no underwriting fees to be paid.”
Before the capital raise, Zimbabwean Brands had majority shareholding in Turnall at 78,7%.
While the capital raise did not change the shareholding structure, if other shareholders, however, had not followed their rights, the shareholding structure would have changed as Zimbabwean Brands would have underwritten the capital raise thereby increasing its stake.
- Turnall to resuscitate fibre plant
- Another Turnall managing director leaves
- Escalating costs weigh down company earnings
- Turnall raises US$8m from shareholders
Keep Reading
The fibre cement building products production capacity is expected to feature the latest technology in fibre cement building production, have capacity to double that of the previous plant, and will be significantly more efficient than previous generation equipment.
Turnall said: “It will also be capable of being converted to produce non-asbestos (new-tech) building products as market trends dictate.”
“The increased production capacity in the Harare factory will enable the plant in Bulawayo to be modified in order to produce non-asbestos products in addition to AC, thus addressing market demands for new-tech products on both the domestic and export markets.
“The second project is to install a plant for the production of glass reinforced pipes (GRP) in Harare in order to address the shift in the pipes demand away from asbestos based products but in particular to service the growing demand for GRP pipes.”
“Production from this plant will service both the domestic market, as well as the regional market for water and sewage infrastructural projects. The plant will feature the latest constant filament winding technology for the production of large diameter GRP products.”
