July 11 (SeeNews) - Croatian diversified holding company Djuro Djakovic [ZSE:DDJH-R-A] said on Tuesday it intends to use the funds raised in a planned capital hike to increase its competitiveness and expand into new markets.
"The planned capital increase process should continue the positive growth trends and increase the company’s competitiveness", Djuro Djakovic said in a Zagreb bourse filing. "The successful completion of the capital increase would create conditions for further development, new investments and the conquering of new markets".
Half of the raised funds will be allocated to the company's working capital, 25% will be directed towards capital expenditures, 20% towards the development of new products and 5% will cover severance payments, the company explained.
On July 5, Djuro Djakovic invited interested investors to subscribe for up to 7,600,000 new ordinary shares with a nominal value of 20 kuna (/2.7 euro) each between July 17 and 21. The company also said it plans to raise its capital by up to 151.9 million kuna to 303.9 million kuna.
The capital hike will be considered successful if at least 2,500,000 shares are subscribed for in the defined period.
(1 euro=7.40313 kuna)