KARACHI, May 20: Pakistan PTA Limited told the stock exchange on Monday that the company had received approval of the Securities and Exchange Commission of Pakistan to issue one billion right shares at discount of 40 per cent.

The company noted that the Board of Directors in its meeting on April 29 had decided to raise Rs6 billion through the issue of right shares at a discount, which discount was subject to the approval of SECP and the company’s shareholders.

The issue of right shares at Rs6 per share against its face value of Rs10, is subject to the shareholders approval which would be sought at the Extraordinary General Meeting to be convened on June 28, the company said.

Subject to such approval of shareholders, the company announced a tentative time table for the rights issue process: book closure for EGM and determination of shareholders’ entitlements- June 22 to 28 (June 28-entitlement date); EGM for approval of issue of shares at a discount-June 28; date of issue of letters of right- July 13; last date of payment/renunciation- September 7; last date of payment by underwriter- September 25; allotment of shares- October 7 and issue of share certificates- within 90 days of allotment.

The company stated that it was also in discussion with CDC regarding direct credit of shares against paid letters of rights.