The stock market regulator has accepted Aamra Networks' proposal to raise nearly Tk 930 million by issuing rights shares for network expansion and loan repayment.
As per the regulatory approval given at a meeting on Wednesday, the company will issue one rights share against existing two shares (1R:2) at an issue price of Tk 30 each, including a premium of Tk 20 per share to the face value.
The company will issue over 30.99 million rights shares for collecting the said amount.
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 fund will be utilised for the purpose of loan repayment, 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.
The demand for Internet, software and IT-enabled services has been growing in the country as many local business entities are adopting automation.
To build a smart Bangladesh, the government has been emphasising on Internet connection and IT services all over the country by setting up a Hi-Tech Park.
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 in FY23, compared to the year before.
The stock price dropped 2.78 per cent to close at Tk 56 per
share on Wednesday, meaning investors will get rights shares at
46 per cent discount, if Wednesday's closing price is taken into consideration.
UCB Investment is acting as issue manager of the rights issue process.
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