ITC Corp, which staged a turnaround for the 12 months to December, is planning to raise at least $420 million through a new warrant issue. Company secretary Sylvia Leung said the rights issue would help enlarge the firm's capital base, reduce borrowings and provide additional working capital. Financial adviser BNP Prime Peregrine Securities plans to issue more than 4.2 billion ordinary shares at 10 cents per rights share. It will provisionally allot three rights shares in nil-paid form for every two ordinary shares held. The rights shares will be issued with one-for-five new warrants, which will allow holders to subscribe for one new share at 10 cents each. A minimum of 840.4 million warrants will be issued. Charles Chan Kwok-keung, the substantial shareholder who through wholly owned Galaxy Investments holds 30.2 per cent of the firm's ordinary share capital, has agreed to take up in full its entitlement under the rights issue, which is not fully underwritten. The company, which changed its financial year end to March, reported a full-year profit to December of $61.9 million, against a loss of $278.8 million. The turnaround was made possible by a $148.4 million profit contribution from associated companies. The company reduced its operating loss from ordinary activities to $71.2 million from $278.9 million. Turnover was $135.8 million, against $431.3 million in 1996. The company will pay a scrip dividend of 0.3 cent a share with a cash option.
