Aamra Networks' rights subscription begins Mar 24

Rights shares subscription of Aamra Networks is set to begin on March 24, aimed at raising nearly Tk 930 million for network expansion and loan repayment.
The subscription period for the IT firm will be continued until April 18 while the record date for entitlement of rights issues has been fixed on March 7, according to a stock exchange filing on Sunday.
The rights issue is an offer of new shares by a company to its existing shareholders in proportion to the shares that they already own and usually at a discount to the market price within a stipulated time.
The Bangladesh Securities and Exchange Commission (BSEC) last week allowed the company's proposal to raise the said amount by issuing over 30.99 million rights shares.
As per the regulatory approval, Aamra Networks will issue one rights share against existing two shares (1R:2) at an issue price of Tk 30 each.
The fund will be utilised for the purpose of paying back loans, upgrading network systems, and expanding network coverage.
Having started commercial operation in 2001, Aamra Networks is one of the first private sector licensed Internet Service Providers (ISP) in Bangladesh.
The major sources of revenue of the company include Internet services, Wi-Fi bandwidth, IT support & services, software & website services.
Aamra Networks listed on the stock exchanges in 2017 by raising Tk 562.5 million under the book-building method.
Amara Networks posted a 6 per cent year-on-year growth in profit to Tk 147 million for July-December 2023. Its annual profit more than doubled to Tk 226 million in FY23, compared to the year before.
The stock price dropped 5 per cent to close at Tk 49.5 per share on Sunday. Its stock plunged 12 per cent in the past two trading days after the regulator gave rights approval.
UCB Investment is acting as issue manager.

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