KARACHI: Summit Bank, the private banking corporation has issued 700.6 million new shares at Rs10 each to Suroor Investment, bank's major sponsor ‘by way of other than right issue.’
According to local media reports, Summit Bank in its stock filing, reported that its current paid-up capital is Rs17.78 billion after the receipt of Rs7 billion subscription money against the issue of 700.6 million ordinary shares to Suroor Investments, a major investor in the bank.
Issuing stocks to a sponsor ‘by way of other than right issue’ means that the shares are for a single investor unlike a typical rights issue which is available to all shareholders in a company.
As per the bank latest reports, the fresh issue of shares has increased the paid-up capital of Summit Bank to Rs17.7 billion, against Rs10.7 billion it had at the end of 2014.
The bank’s board of directors had approved the issue of shares to Suroor Investments in March last year.
The issue of new shares will enhance the capital base of the bank and provide additional comfort to its stakeholders, said Summit Bank. Which will lead to better credit rating for the bank, it said, adding that the extra equity will enable it to explore new business avenues.
Prior the issue of mentioned shares, Suroor Investments, held a 51.46 percent stake in Summit Bank at the end of 2014, which had now risen to 70.58 percent after the .
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