The board of directors of IFIC Bank Ltd has further decided to revise the ratio of right shares subject to the approval of the shareholders and the stock market regulator.
The rights issue is an offer of new shares by a company to its existing shareholders in proportion to the shares they already own and usually at a discount to market price.
The board has now decided to issue one rights share for existing five shares held instead of earlier recommended one rights share for every four shares held, said an official disclosure on Thursday.
Initially, in May 2019, the board of directors of IFIC Bank decided to issue one rights share for existing one share at an offer price of Tk 10 each to raise paid-up capital and to meet future capital requirement.
Later in August 2019, the bank revised the ratio to issue one rights share for existing four shares held instead of earlier recommended one rights share for one existing share.
For the shareholders approval, the bank will hold an extraordinary general meeting (EGM) on November 12 at 11:00am.
The record date for the EGM is September 10. Another record date will be declared after obtaining approval from Bangladesh Securities and Exchange Commission (BSEC).
Each share of the bank, which was listed on the Dhaka bourse in 1986, closed at Tk 8.60 on Wednesday.
The bank’s share traded between Tk 7.80 and Tk 10.70 in the last one year.
The bank has also disclosed second quarter (Q2) un-audited financial statements on Thursday.
As per the Q2, its consolidated earnings per share (EPS) were Tk 0.11 for April-June 2020 as against Tk 0.58 for April-June 2019.
In six months for January-June, 2020, its consolidated EPS was Tk. 0.59 as against Tk. 1.01 for January-June 2019.
The consolidated net operating cash flow per share (NOCFPS) was negative Tk 4.40 for January-June 2020 as against Tk. 3.45 for January-June 2019.
The consolidated net asset value (NAV) per share was Tk. 18.48 as on June 30, 2020 and Tk. 17.12 as on June 30, 2019.
The bank has recommended 10 per cent stock dividend for the year ended on December 31, 2019. In 2018, it also disbursed 10 per cent stock dividend.
The bank’s paid-up capital is Tk 14.72 billion, authorised capital is Tk 40 billion and the total number of securities is 1.47 billion.
The sponsor-directors own 8.33 per cent stake in the company, while the government owns 32.75 per cent, institutional investors 23.73 per cent, foreign investors 1.0 per cent and the general public 34.19 per cent as of January 31, 2020.