Associated Oxygen, which produces gas products for the last three decades, has decided to issue a convertible bond worth Tk 2.50 billion for its business expansion.
Associated Oxygen signed a fund arrangement agreement with Janata Capital and Investment Ltd as its fund arranger on Thursday last, said the company in a filing with the Dhaka Stock Exchange (DSE) on Sunday.
The bond issuance is subject to the approval of the Bangladesh Securities and Exchange Commission and the shareholders of the company in the next annual general meeting, said the company.
A convertible bond is a fixed-income corporate debt security that yields interest payments but can be converted into a predetermined number of common stock or equity shares.
The company raised Tk 150 million under the fixed price method from the capital market to expand its business in 2020.
The stock remained stuck at floor price -Tk 36.50 --- since October 18.
The company holds a board meeting today (Monday) to consider auditing its financial statements for the year ended in June.
In 2021, the company disbursed 5.0 per cent cash and 7.0 per cent stock dividend. The year before, it provided 2.0 per cent cash and 8.0 per cent stock dividend. For the nine months through March 2022, the company's earnings per share (EPS) stood at Tk 1.34 down from Tk 1.59 for July 2020-March 2021.
Incorporated in 1990, Associated Oxygen started commercial operation in 1992. The company is a producer and supplier of industrial and medical gases, welding products and equipment and ancillary equipment.
It supplies oxygen and nitrogen in liquid and gaseous forms to industries and hospitals.
Its paid-up capital is Tk 1.09 million and authorized capital is Tk 1.10 billion while the total number of securities 109.78 million.
