Financial Times

Pan Asia rights issue in 2nd half of 2006
Pan Asia Bank, in a bid to meet the minimum capital adequacy requirement of the Central Bank, is gearing for a rights issue by mid-2006 and an initial public offering (IPO) by late 2007.

Bradley Emerson, Deputy CEO, Pan Asia Bank said a 1-for-1 rights issue is billed for the second half of 2006 with an IPO in 2007. “We are planning to meet the Rs.1.25 billion minimum capital adequacy requirement stipulated by the Central Bank for end 2006 with a rights issue by mid-2006,” he said.

He said the bank already has Rs.500 million in shareholder funds and the net profit for this year will contribute to the minimum capital adequacy requirement. “The net profit projected for 2005 is Rs.100 million and we will raise the balance Rs.650 million through a rights issue,” Emerson said.

He said that Pan Asia will eventually have to go for an IPO by 2007 to meet the Rs.2.5 billion requirement for that year. “This is an option that we have not explored so far and we will eventually have to take this opportunity,” he said. He said that the bank has done well on its own and will not merge with any other institution. “We will definitely not merge with anyone,” he said.

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