Sinobangla to begin issuing rights shares on Jan 28
It will raise Tk 202m for capital machinery purchase, debt settlement
FE REPORT | Wednesday, 20 December 2023
Rights share subscription of Sinobangla Industries is set to begin on January 28 to raise Tk 202 million from shareholders.
The subscription period for the manufacturer of plastic packaging products will continue until February 15.
January 9 has been fixed as the record date for the entitlement of rights shares, according to a stock exchange filing on Tuesday.
The stock market regulator last week allowed Sinobangla Industries' proposal to raise capital by issuing rights shares for loan repayment and capital machinery purchase for business expansion.
As per the regulatory approval, the company will issue one rights share against existing two shares at an issue price of Tk 20 each, including a premium of Tk 10 per share.
The company will issue over 10.09 million rights shares to collect the said amount.
UCB Investment is acting as issue manager. Investors will be able to deposit money into selected branches of United Commercial Bank to purchase rights shares.
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 the market price within a specific time.
Currently, the company's paid-up capital is Tk 201.97 million.
It has reported earnings per share of Tk 1.73 for FY23, down from Tk 1.79 for the year before. Its net asset value (NAV) per share was Tk 28.34 at the end of FY23, up from Tk 27.87 in June 2022.
It declared 10 per cent cash dividend for the year ended in June this year.
Sinobangla's stock rose 2.18 per cent to close at Tk 65.50 on Tuesday on the Dhaka bourse.
Founded in 1996 as a China-Bangladesh joint venture, the company produces and exports a wide range of polypropylene woven sacks and value-added flexible intermediate bulk containers.