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Carbacid gets CMA nod on bonus issue

By | December 8th 2009

By Jackson Okoth

The Capital Markets Authority (CMA) has granted approval to Carbacid Investments Limited to issue and list on the Nairobi Stock Exchange (NSE) an additional 22,653,510 ordinary shares of a par value of Sh5 each.

This will be in the form of a bonus issue to the shareholders of Carbacid Investments Limited, in the ratio of two new ordinary shares for every one ordinary share held.

The Authority’s approval is subject to Carbacid Investments shareholders approving the bonus issue.

"The Authority has reviewed the disclosures made by Carbacid Investments Limited in its application and is satisfied that they are in conformity with the disclosure requirements for additional issues under the Capital Markets Act and regulations," said Mrs Stella Kilonzo, CMA Chief Executive.

Directors of Carbacid have proposed to increase the company’s share capital from Sh60 million to Sh250 million by the creation of additional 38 additional ordinary shares of Sh5 each.

This will be at the Annual General Meeting to be held on Thursday.

Following CMA approval, it remains for shareholders of Carbacid to approve the capitalisation issue where two new shares will be given for every one held to shareholders registered in the books of the company at the close of business on November 12.

The approval also opens the door for share certificates in respect of the capitalisation issue and dividend warrants to be dispatched to shareholders on or about December 10.

Suspension period

Trading in carbon dioxide manufacturer Carbacid shares resumed last month after suspension since 2005, following a failed bid by industrial gas manufacturer BOC Kenya to take it over.

In the financial year ended July 31, 2009, Carbacid announced a 53.7 per cent growth in profit after tax, from Sh166.7 million to Sh 256.3 million.

This is after it benefited from increased exports of carbon dioxide gas to the region, the main consumers being beverage manufacturers.

The company has also been on an expansion programme of its distribution chain since January this year. During the same period, sales revenue were up 42.8 per cent, indicating a marked improvement in the top-line, arising from an improved distribution as the country has recovered from last year’s post-election disruptions and improved distribution to Uganda and Tanzania.

Carbacid controls more than 65 per cent market share of Carbon dioxide with stiff competition from Spectre International.

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