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Envoy Textile to issue 87m preference shares

FE Online Report | Published: July 04, 2019 15:51:29 | Updated: July 06, 2019 10:44:41


The board of directors of Envoy Textile Limited has decided to issue 87 million preference shares at par through private placement to the potential investors.

Preference share is a share which entitles the holder to a fixed dividend, whose payment takes priority over that of ordinary share dividends.

The tenure of the preference shares will be for five years at a face value of Tk 10 each at par for a total amount of Tk 870 million, said an official discourse on Thursday.

The said preference shares shall be fully redeemable cumulative non-convertible within five years and to be redeemed the principal amount by yearly equal installments commencing from the first-year end from the date of subscription, according to the disclosure.

Dividend will be paid semi-annually in arrear basis at a fixed rate.

The share issue is subject to the approval of Bangladesh Securities and Exchange Commission for capital investment in BMRE and for settle up the existing high cost debt, the disclosure added.

Envoy Textile, which was listed on the Dhaka Stock Exchange (DSE) in 2012, disbursed 10 per cent cash and 2.0 per cent stock dividend for the ended on June 30, 2018.

On the Dhaka Stock Exchange (DSE), each Envoy Textile share traded between Tk 34.80 and Tk 35.80 on Wednesday, before closing at Tk 34.90 on the day.

Each share of the company closed at Tk 34.90 each on Wednesday at the DSE.

The company’s share traded between Tk 31 and Tk 41.20 in the last one year.

The company’s paid-up capital is Tk 1.67 billion and authorised capital is Tk 4.0 billion, while the total number of securities is 167.73 million.

The sponsor-directors own 45.59 per cent stake in the company, while institutional investors own 42.06 per cent, foreign investors 0.09 per cent and the general public 12.26 per cent as on April 30, 2019, the DSE data shows.

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