VBL, the Valletta real estate firm that bills itself as the largest private landowner in Malta’s capital, has announced that it will be issuing new ordinary shares up to a total of €1 million after identifying “a number of potential private investors which have shown an interest in the subscription of new shares, with a view of raising new equity capital on a private placement basis”.
In March, the company announced that it was reviewing a number of strategic options to develop itself further and work towards continuous expansion within its core market.
The decision to evaluate various strategic options for its future came as it focused to further develop the group, achieve improved performances in the future, as well as make strides towards continuous expansion in its core market.
As a result, it considered a range of options, such as the possibility of raising further capital from strategic or financial investors, or by carrying out equity transactions, including possibilities that might prompt changes to the shareholding structure.
At the time, the group stated that it will start discussions with local and international advisors to “map out potential opportunities” and “explore and perform a comprehensive evaluation of strategic options and initiatives to unlock and maximise shareholder value going forward.”
The latest announcement, published on the Malta Stock Exchange (MSE) on Friday 23rd June, marks a new stage in this development.
The new subscription is to be completed by 31st December 2023.
The subscription price shall not be lower than the weighted average trading price of the VBL ordinary shares at the Malta Stock Exchange of the last 360 days (bottom of the range) and shall not be higher than 150 per cent of the weighted average trading price of the VBL ordinary shares at the MSE of the last 360 days (top of the range).
VBL’s share price has fluctuated between €0.20 per share and €0.27 per share over the last year, lower than the original subscription price of €0.28 per share.
The new shares can be issued under the terms of the original prospectus for its 2021 IPO.
The company registered record results for 2022, allowing it to increase its dividend by 12.5 per cent.