Premier Cement Mills will issue fully redeemable and non-convertible preference shares to raise a capital worth above Tk 3.10 billion.
The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved the company's proposal of issuing preference shares at a meeting held at the BSEC office.
The preference shares worth above Tk 2.35 billion will be issued for a period of five years to potential investors through private placement.
And the shares worth Tk 750 million will be issued to the company's sponsor shareholders or directors and the tenure of such shares will be 12 years.
The rate of dividend of the shares, which will be issued through private placement, will be 6.25 per cent to 7.75 per cent.
The rate of dividend of the preference shares to be issued to sponsor shareholders or directors will be zero per cent.
The offer price of the preference shares of the Premier Cement Mills is Tk 2.5 million.
The company will utilise the fund to restructure balance sheet, reduce the financial costs, enhance profit and develop financial indicators.
Premier Cement Mills, presently an 'A' category company, was listed with the stock exchanges in 2013.
The company's sponsor-directors hold 47.15 per cent shares, institutes 20.12 per cent, foreigners 0.04 per cent and general shareholders 32.69 per cent as on January 31, 2022.
The company's share price closed at Tk 57.90 each on Tuesday with a loss of 0.17 per cent on Dhaka Stock Exchange (DSE).
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