Gijima rights offer results
Troubled ICT firm, Gijima has released the results of its rights offer on Monday (24 June), showing that it was 81.9% subscribed for.
Gijima had hoped to raise R150 million in new equity capital by way of a rights offer of three billion new Gijima ordinary shares at a subscription price of 5 cents per share.
The listed tech player said in March that it aimed to re-capitalise the company, to ensure compliance with all of its funding covenants under the securitisation and to finance its working capital requirements.
On Monday, Gijima said that 2 457 387 632 shares had been subscribed for, representing 81.9%, while 17.5% or 525 708 617 rights offer shares would be allocated to the underwriters.
Excess rights offer shares applied for and allocated amounted to 0.6% or 16.9 million.
The Rights Offer was underwritten by Guma Tech, Guma Support, Guma Investment Holdings, Guma Tech Group and Futuregrowth Asset Management
Gijima said in April that it would make “minor retrenchments” by reducing its current headcount of 2,500 by around 250, or 10%.
This followed yet another set of disappointing results for the six months ended December 2012, in which Gijima reported a 23% decline in revenue from continuing operations.
Revenue from continuing operations was R911 million, down from R1.1 billion in 2011, and the operating loss from continuing operations was R123 million, after a R33 million operating profit in 2012.
This translated into a loss in headline earnings per share from continuing operations of 11.12 cents, compared with positive earnings of 1.47 cents in 2011.
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