The board of directors of IPDC Finance has decided to raise the paid-up capital by issuing rights shares, according to an official disclosure on Wednesday.
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 market price.
"Purpose of rights issues is to cope with the business growth and strengthen the capital base of the company with capital adequacy compliances," said the disclosure posted on the Dhaka Stock Exchange (DSE) website.
The non-bank financial institution, which was listed on the Dhaka bourse in 2006, decided to issue one rights share against existing two shares of Tk 13 each, including a premium of Tk 3.0.
However, the rights issue is subject to approval of shareholders, Bangladesh Securities & Exchange Commission (BSEC) and complying with the requirements embodied in relevant laws and regulatory authorities concerned, the disclosure said.
The board has recommended that the authorised capital will be increased to Tk 20 billion from existing Tk 4.0 billion, subject to approval of shareholders in the ensuing extraordinary general meeting (EGM).
The board of directors of the company has also recommended 20 per cent stock dividend for the year ended on December 31, 2017.
The final approval will come during the annual general meeting (AGM) and extraordinary general meeting (EGM) scheduled to be held on March 25 at 9:00am and 9:30am respectively.
The record date for entitlement of dividend is on February 27. Another record date for entitlement of the proposed rights shares will be notified later after obtaining approval from BSEC.
The company has also reported earnings per share (EPS) of Tk 1.85, net asset value (NAV) per share of Tk 17.11 and consolidated net operating cash flow per share (NOCFPS) of Tk 2.25 for the year ended on December 31, 2017 as against Tk 1.67, Tk 15.26 and Tk 6.23 respectively for the same period of the previous year.
In 2016, the company also disbursed 20 per cent stock dividend.
Each share of the company, which was listed on the Dhaka bourse in 2006, closed at Tk 49.30 on Wednesday at DSE, advancing 1.86 per cent over the previous day.
The company's paid-up capital is Tk 4.0 billion and authorised capital is Tk 1.81 billion, while the total number of securities is 181.80 million.
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