January 10 (SeeNews) - Croatian shipping company Jadroplov [ZSE:JDPL] said on Monday it plans to raise its capital by up to 350 million kuna ($53 million/47 million euro), after cancelling a capital increase procedure last year.
The company's supervisory board decided on January 10 to give approval to the management to start preparatory works for a capital increase by between 150 million kuna and 350 million kuna via a new share issue, the company said in a filing to the Zagreb bourse.
The final price of the new shares will be determined before the beginning of their public offering.
The capital increase will be carried out in several rounds, as existing shareholders will be granted priority in the firts round.
It is still pending approval by the shareholders.
The company did not say explicitly how it plans to use the proceeds. However, it is considering buying two chemical tankers from the Brodotrogir shipyard, as it will cover most of the price by a loan from state development bank HBOR. Jadroplov also said it has contracted local engineering company Classis for a design project for electricity-driven ferry for more than 1,000 passengers and 150 cars.
The company's capital of 16.37 million kuna is divided into 1,636,674 shares with a par value of 10 kuna apiece.
In mid-July, the company's previous management invited potential investors to subscribe for 2 million new shares with a face value of 10 kuna apiece at a minimum price of 25 kuna ($3.9/3.3 euro).
The public call was based on a decision of Jadroplov shareholders from November 11, 2020 to increase the company's capital by issuing new shares with a total par value of up to 40.9 million kuna.
The then management said at the beginning of September that it approved 12 bids and sent counter offers for a price of 26 kuna per share to 11 of the bidders. Eight of the bidders accepted the counter bids. However, the company's supervisory board withdrew its initial approval for the capital increase through a new share issue.
At the beginning of September, Jadroplov's supervisory board appointed Ivan Pavlovic as CEO with a five-year term.
According to local media reports, the supervisory board considers the terms of the capital increase initiated by the previous management unfavourable in view of a recent increase of cargo fares for shipping companies.
The company's shares traded 9.40% lower at 53 kuna intraday on Monday.
(1 euro = 7.521 Croatian kuna)