Jordan Investment Trust (Jordinvest), a leading provider of financial and investment services, and National Steel Industry of Jordan have signed an agreement towards organising the steel firm’s capital restructuring process.

The agreement assigns Jordinvest to advice, arrange and lead manage public shareholding company National Steel Industry's capital restructuring process by which the capital will be raised from JD2 million ($2.82 million) to JD6 million ($8.47 million) whereby JD2 million will be raised through a rights issue and another JD2 million through a private placement.

The agreement comprises of four phases; during the first phase, Jordinvest will conduct financial due diligence, modeling and valuation for the company thus creating a valuation report.

The second phase will include financial projections and a feasibility study to determine the capital needed for expansion.

The third phase will involve documenting the projections in a private placement memorandum (PPM), while the fourth and final phase will entail the issuing of shares to attain new investors.

"We are very pleased with our cooperation with the National Steel Industry Company, as we at Jordinvest are particularly interested in supporting Jordan's industrial sector in line with our strong faith in the pivotal role this sector plays in supporting economic development and sustainability," said Ahmad Tantash, CEO of Jordinvest.

"We are confident that the National Steel Industry Company's future plans will in fact play a vital role in the growth of this sector in Jordan, particularly in light of the current economic challenges being faced today all over the world across various sectors," he added.

Dr Ghassan Mufleh, chairman and CEO of National Steel Industry said: "Our partnership with Jordinvest will support our capital raising operations and add value to them through the establishment of sound financial foundations, bringing us closer to achieving the results we strive for.”

“We are always careful to adopt the latest methodologies in all our operations by partnering ourselves with industry experts such as Jordinvest,” he added. – TradeArabia News Service