Longhorn Publishers’ Sh530 million rights issue has been fully subscribed, underlining investors’ appetite for the listed firm.
Shareholders raised Sh533 million, a 101 subscription rate that has earned the company Sh3 million more, to show goodwill of investors towards its expansion plans.
The firm had offered 126 million new shares to existing shareholders at a rate of 0.86 shares for every share held.
Longhorn Publishers group managing director Simon Ngigi said the company would maintain its strong focus on growing market share with a strong emphasis on digital product enhancement and regional diversification.
Regional expansion will take up Sh80 million, Sh100 million will go towards product diversification while another Sh100 million is earmarked to retire its current debt obligations.
“At least 10 per cent of the funds raised will go towards enhancing our digital offering by increasing the number of titles we put into the market, as well as developing a proprietary platform to enhance the disbursement of the content,” said Ngigi.
Board chairman FT Nyammo promised more returns to shareholders as the company moves to explore new avenues to grow business.
“As Africa’s only listed publisher, we continue to make our mark in various parts of the continent with an impending foray into Francophone Africa” he said.