MTCC to reduce face value of shares, issue rights

Board of Directors of Maldives Transport and Contracting Company have decided to reduce the face value of its shares from MVR 50 to MVR 5 per share, meaning a share held by one of its existing shareholders is now 10 shares.

MTCC announced this Sunday that its Board of Directors has made several major decisions.

Reducing face value of shares

Face value of a MTCC share used to be MVR 50 per share. The Board has decided to reduce the face value to MVR 5 per share. Therefore, a share held by one of its existing shareholders is now 10 shares.

Rights issuance

Board decided to issue rights, meaning a dividend of subscription rights to buy additional shares to MTCC’s existing shareholders. The price set by Board is MVR 62.

Selling unsold shares to general public

MTCC reports its Board has decided that unsold shares after timer period to issue rights and shares which haven’t been traded in the stock exchange will be made available for sale to the general public.

But those shares are to be sold at its full price – MVR 112.

Chairman of MTCC, Ahmed Niyaz commended the decision of the Board, said it represented the priority given to shareholders and reinforced the company’s mission to expand its operations and become a driving force for development of the country.