The capital increase is to be executed by issuing a new series of shares valued at 114 million kuna. Given that the proposed share issuance is without a prospectus, it is unclear whether Magma needs capital to overcome operational difficulties or intends to embark on a new investment cycle.
The Supervisory Board of Magma today supported the Management’s proposal to convene an extraordinary shareholders’ meeting in April, which is expected to decide on the issuance of a new series of shares worth 114 million kuna. Since the Management’s proposal is to issue shares without prior publication of a prospectus, it cannot be said with certainty what the reasons for the capital increase and dilution of the shareholder structure are. The capital increase itself is to be conducted without preemptive rights, meaning that all investors will be able to subscribe for shares. If the Magma Assembly confirms such a decision, it should be the first secondary public offering of shares this year. (Amir Kulenović)
