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IPDC Finance cuts offer price for rights issues

FE Report | Published: February 12, 2019 10:28:35 | Updated: February 12, 2019 15:57:43


IPDC Finance has revised down the offer price for the rights shares to be issued to the existing shareholders.

As per the revised decision, the offer price for the rights issues will now be Tk 12 each, including a premium of Tk 2.0, instead of Tk 13 previously declared by the company.

The company's rights shares will be issued at a ratio of 1R:2 (one rights share against two shares).

"The company has revised the rights offer after considering 8.0 per cent stock dividend for the year 2018, subject to approval from the shareholders, the securities regulator and other authorities concerned," the company said in a disclosure posted on the website of the Dhaka Stock Exchange (DSE).

The board of directors of the IPDC Finance has recommended 7.0 per cent cash and 8.0 per cent stock dividends for the year ended on December 31, 2018.

The purpose of rights issue is to maintain the business growth and strengthen the capital base of the company as well as maintain capital as required by Bangladesh Bank, the IPDC Finance said.

Also, the land and building of the company has been revalued by a professional valuer. The value stands at Tk 369.91 million as on December 31, 2018 as against the written-down value of Tk 144.57 million.

The IPDC Finance, presently an 'A' category company, has also reported earnings per share (EPS) of Tk 2.06, NAV per share of Tk 17.20 and NOCFPS of Tk (3.84), a negative value, for the year ended on December 31, 2018 as against Tk 1.54, Tk 14.26 and Tk 1.88 respectively for the same period of the previous year.

On Monday, the IPDC Finance emerged as the biggest loser on the DSE, as its share price declined 8.68 per cent to close at Tk 38.90 each.

mufazzal.fe@gmail.com

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