By KBC Reporter
Longhorn Publishers has announced a 530 million shillings rights issue in which 50 million shillings of the amount will be injected in expanding the firms digital platform which has been growing over the years.
Longhorn Publishers C.E.O Simon Ngigi says digital publishing has helped in reducing piracy which has been costing the firm 30 percent of its turnover.
The funds will also cover repayment of debts, local mergers and acquisitions, product diversification among others.
The piracy predicament has been a major challenge for publishers in the country.
It is estimated that 38.7 percent of published works is pirated with pirates raking in close to 12 billion shillings from the vice.
According to Ngigi, 30 percent of the firm’s turnover is lost through piracy.
This prompted local publisher to pursue digital publishing which they say has helped in eliminating piracy and has also proven to be profitable considering it does not have the challenge of holding of stocks.
Ngigi however says aside from piracy, there are government policies limiting growth of the sector and has urged the government to support industry players in taking the sector a step higher.
The raised funds will also cover repayment of debts, funding working capital, product diversification, geographical diversification as well as local mergers and acquisitions.