Bermuda Aviation Services Ltd. is set to raise an additional $15.8 million in capital through a rights issues to its shareholders.

The board of directors of BAS said on Friday that it would offer shareholders of record on Tuesday, January 31 the right to buy one new share for each share registered in their name for $6.25 per share.

The company, which told The Royal Gazette in October that it was considering a share issue, said that if all shareholder exercised their rights, 2.5 million shares would be issued, raising gross proceeds of $15.8 million.

The company did not disclose how it intended to use the capital, but it has credit agreements in place of up to $8.9 million to finance an ambitious diversification strategy.

Over the last eight years, the airport services company has bought businesses in food, car parts and courier services.

In November, it reported record six month net income of net income of $1.9 million, a 70 percent increase on the same period a year earlier, and revenue of $18.2 million, an increase of 119 percent.

On Friday, its shares traded unchanged at $7.50.

The rights offer becomes effective on Wednesday, and rights to acquire new common shares may be exercised thereafter until noon on February 28.

A prospectus detailing the terms of the offering will be circulated to shareholders whose registered addresses are in Bermuda, on Wednesday, the company said.

The offering is underwritten by the Bank of N.T. Butterfield & Son Limited and an application to list the new common shares of BAS has been made to the Bermuda Stock Exchange.