Sinobangla’s rights subscription begins Jan 28
Record date for entitlement of rights Jan 9
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Rights shares subscription of Sinobangla Industries is set to begin on January 28, 2024, aiming to raise Tk 202 million through rights issuance.
The subscription period for the manufacturer of plastic packaging products will be continued until February 15. The record date for entitlement of rights share has been fixed for January 9, 2024, according to a stock exchange filing on Tuesday.
The rights-shares issue is an offer of new shares by a company to its existing shareholders in proportion to the shares they already own, usually at a discount to the market price within a specified time.
On December 12, the stock market regulator allowed Sinobangla Industries’ proposal to raise nearly Tk 202 million through issuing rights shares for business expansion and loan repayments.
As per the regulatory approval, the company will issue one rights shares against the existing two shares (1R:2) at an issue price of Tk 20 each, including a premium of Tk 10 per share.
The company will issue over 10.09 million rights shares for raising the said amount.
The company will utilise the rights proceeds for purchasing capital machinery and loan repayment.
UCB Investment Ltd is acting as the issue manager of the company’s rights issue.
Currently, the company’s paid-up capital is Tk 201.97 million.
The company reported earnings per share of Tk 1.73 in FY23 as against Tk 1.79 in the year before. Its net asset value (NAV) per share was Tk 28.34, up from Tk 27.87 in June 2022.
The company declared a 10 per cent cash dividend for the year ended June 30, 2023.
Sinobangla’s stock closed at Tk 64.1 on Monday at the Dhaka bourse.
Founded in 1996 as a China-Bangladesh joint venture, the company produces and exports a complete range of polypropylene woven sacks and value-added flexible intermediate bulk containers.