Rights shares subscription of IPDC Finance is set to begin on July 10, aiming to raise a capital worth Tk 1.41 billion.
Rights subscription of the non-bank financial institution will continue until July 31, 2019, officials said.
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 record date for issuance of rights shares of IPDC Finance is June 25.
The Bangladesh Securities and Exchange Commission (BSEC) approved the company’s application to raise its above-mentioned capital through rights issue on May 29.
As per the BSEC approval, one rights share will be offered against two existing shares.
The non-bank financial institution, which was listed in the Dhaka bourse in 2006, will issue 117,806,840 ordinary shares of Tk 10 each at an issue price of Tk 12, including a premium of Tk 2.0 per share.
The purpose of issuance of rights share is to cope with the business growth and to strengthen the capital bases of the company with capital adequacy compliances.
The company has reported un-audited earnings per share (EPS) of Tk 0.67 for January-March 2019 as against Tk 0.31 for January-March 2018.
The company’s net operating cash flow per share (NOCFPS) was negative Tk 4.99 for January-March 2019 as against negative Tk 2.48 for January-March, 2018.
The net asset value (NAV) per share was Tk 15.95 as on March 31, 2019 and Tk 15.92 as on December 31, 2018.
On the Dhaka Stock Exchange, each IPDC share was traded between Tk 33.90 and Tk 36, before closing at Tk 34.80 on May 30, the last trading day before Eid vacation.
Sponsors hold 40 per cent stakes in IPDC Finance, while the government owns 21.88 per cent, institutions 25.40 per cent, foreign investors 2.85 per cent and general public the remaining 9.87 per cent as of April 30, the DSE data shows.
The company’s paid-up capital is Tk 2.35 billion and authorised capital is Tk 4.0 billion, while the total number of securities is 235.61 million.
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