Summit Bank to raise PkR 2.15bn by issuing preference shares – Alfalah Securities Limited

Karachi, June 21, 2012 (PPI-OT): The Board of Directors (BoD) of Summit Bank Limited has announced in a meeting held yesterday to issue convertible preference shares at a par value of PkR 10 per share having a fixed dividend rate of 5% per annum for a period of five years in order to raise PkR 2.156 bn.

According to Alfalah Securities Limited, Summit Bank would offer convertible preference shares to existing shareholders subjected to regulatory approval in the ratio of 1:5 i.e. 20% (1 preference share against every 5 ordinary shares held by shareholders). Shareholders would be able to convert preference shares into ordinary shares at a book value determined in the audited financial statements as of December 31, 2012. Alfalah Securities Limited believes the issuance of preference shares by Summit Bank is a step to achieve the Minimum Capital Requirement (MCR) target as per the requirement of SBP.