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Golden Harvest to issue rights for business expansion

The company recommends 10pc stock dividend

FE Report | October 29, 2018 00:00:00

The board of directors of Golden Harvest Argo Industries Ltd has decided to issue rights shares, said an official disclosure on Sunday.

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 rate to market price.

The raised fund will be used for expansion of existing production and distribution channels and pay-off long-term loans of the company, according to the disclosure.

The food & allied sector company, which was listed n Dhaka bourse in 2013, will issue one rights share for existing one share at Tk 10 per share.

The rights issue is subject to the approval of shareholders, Bangladesh Securities and Exchange Commission (BSEC) and other regulatory authorities.

The board of director has recommended 10 per cent stock dividend for the year ended on June 30, 2018.

The board has also decided to increase the authorised capital of the company from Tk 2.0 billion to Tk 2.50 billion by amending clause "V" of the Memorandum of Association and Clause -5 of the Articles of Association of the company, subject to the approval of the shareholders in the annual general meeting (AGM).

The AGM will be held on December 19 on factory premises in Gazipur. The record date is on November 19.

The company has also reported earnings per share (EPS) of Tk 2.04, net asset value (NAV) per share of Tk 22.31 and net operating cash flow per share (NOCFPS) of Tk 4.31 for the year ended on June 30, 2018 as against Tk 1.89, Tk 22.20 and Tk 3.47 respectively for the same period of the previous year.

Another record date for entitlement of the proposed rights shares will be notified later after obtaining approval from BSEC.

Each share of the company closed at Tk 31.90 on Sunday, losing 0.62 per cent over the previous day.

The company also disbursed 10 per cent stock dividend for the year ended on June 30, 2017.

The sponsor-directors own 33.03 per cent stake in the company, while institutional investors 39.92 per cent and the general public 27.05 per cent as on September 30, 2016.

The company's paid-up capital is Tk 1.09 billion and authorised capital is Tk 2.0 billion, while total number of securities is 109 million, according to statistics from the DSE.

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