Rights shares subscription of IPDC Finance Ltd is set to begin July 10, aiming to raise Tk 1.41 billion through rights issuance.
Rights subscription of the non-bank financial institution will be continued 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 was on June 25.
The securities regulator -- Bangladesh Securities and Exchange Commission (BSEC) -- approved the company's application to raise Tk 1.41 billion through rights issue on May 29.
As per the BSEC approval, the company offered one rights share for existing two shares.
The company noted that it shall comply with the requirements embodied in the Rights Issue Rules, 2006 and other relevant laws and regulatory requirements, and shall also adhere to the conditions imposed under Section-2CC of the Securities and Exchange Ordinance, 1969.
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 base 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 traded between Tk 25.50 and Tk 26.80, before closing at Tk 26.30 on Sunday.
The company disbursed 7.0 per cent cash and 8.0 per cent stock dividend for the year ended on December 31, 2018.
Sponsors hold 40 per cent stakes in IPDC Finance while the government owns 21.88 per cent, institutions 25.12 per cent, foreign investors 2.85 per cent and general public the remaining 10.15 per cent as of May 31, 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.
