ICB to raise paid-up capital by Tk 2.1b

FE Report The Investment Corporation of Bangladesh (ICB) will raise its paid up capital by Tk 2.1 billion to strengthen capital base, official sources said. The capital will be raised through issuing right shares at a ratio of 2:1 or one share against two shares held. Each right share, with Tk 100 face value, will be priced at Tk 500, including a premium of Tk 400. Presently the paid up capital of the ICB is nearly Tk 4.22 billion, which will be increased to Tk 6.33 billion through issuance of the right shares. The paid up capital of ICB was Tk 50 million during its establishment. Presently 70.29 per cent stake of the ICB is held by different organisations, including banks and financial institutions. General public hold only 2.71 per cent shares of the corporation, while the government holds 27 per cent shares. Officials said since December 2010 the state-run investment promotion agency has been trying to issue right shares to strengthen its capital base. The ICB initially proposed to issue right shares at an issue price of Tk 1,000 each with Tk 900 as premium. Later, it cut down the price by 50 per cent to Tk 500 considering the dwindling trend in the stock market and subsequent price slump of its shares, sources said. Each share of the ICB with Tk 100 face value was traded at Tk 1,260 last Thursday. The price range of its shares was between Tk 1,222 and Tk 2,599 during the last 52 weeks, according to the Dhaka Stock Exchange (DSE) website. The ICB was established through an ordinance in 1976 to encourage and broaden the base of investment, develop the capital market, mobilise savings, and promote and establish subsidiaries for business development.