FE Report
Rights subscription of IDLC Finance began on Sunday, which will raise Tk 2.51 billion through rights issuance, officials said.
A rights issue is a method of raising capital where a company invites existing shareholders to buy additional shares within a fixed time period in proportion to the shares they already own and usually at a discount to market price.
The companies intended to issue rights shares to strengthen their capital structure and also to use funds for business expansion and loan repayment.
The subscription of the IDLC Finance's rights shares will be continued until January 19, 2017.
On November 22, the Bangladesh Securities and Exchange Commission (BSEC) approved IDLC Finance's application to raise Tk 2.51 billion through rights issue.
The leading non-bank financial institution, which was listed on the bourses in 1992, will issue 125.7 million rights shares of Tk 20 each, including Tk 10 as premium.
One rights share will be offered for existing two shares, according to the rights share offer document.
The proceeds to be received from rights issue will be invested to increase the lending portfolio of the company as well as to maintain its smooth growth.
City Bank Capital Resources is acting as the issue manager of the company's rights issue.
The company's earnings per share (EPS) stood at Tk 5.81 as per the 2015 audited financial statement and the net asset value (NAV) per share Tk 30.97.
On the DSE, the company's share price hovered between Tk 57.30 and Tk 58.40, before closing at Tk 57.70 each on Sunday, advancing 1.23 per cent over the previous day.
The company disbursed 25 per cent cash dividend for the year ended on December 31, 2015. In 2014, the company disbursed 10 per cent cash and 25 per cent stock dividend.
Sponsors hold 59.66 per cent stakes in IDLC, institutions 23.02 per cent, foreign investors 4.68 per cent and general public the remaining 12.64 per cent as on November 30, 2016, the DSE data shows.
The company's paid-up capital is Tk 2,513.67 million and authorized capital is Tk 10,000 million while total number of securities is 251,367,187.
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