Dhaka, Bangladesh (BBN)– AB Bank Limited has informed that the extra ordinary general meeting (EGM) and annual general meeting (AGM) have approved to increase the paid-up capital of the bank by issuing rights share.
Rights shares are issued to a company’s existing shareholders that entitle them to buy additional shares directly from the company in proportion to their existing holdings within a fixed time period.
The AB Bank will issue four rights shares against existing five shares to the existing shareholders at a price of BDT 10 per share, instead of earlier proposed BDT 12.50 per share, after effecting stock dividend for the year ended 2015.
The AGM, which held July Tuesday, also approved 12.50 percent stock dividend for the year ended on December 31, 2015.
Each share of the bank hovered between BDT 16 and BDT 16.50, before closing at BDT 16.10 on Wednesday, registering a decline of 1.83 percent over the previous day.
AB Bank was listed on the Dhaka bourse in 1983. The bank belongs to the “A” category.
The sponsor-directors own only 13.90 percent stake in the AB Bank, while the government own 0.57 percent, institutional investors own 57.20 percent and the general public own 26.83 percent.
The bank’s paid-up capital is BDT 6,738.94 million and authorised capital is BDT 15,000 million, while the total number of securities is 673,893,614. The total market cap of the company stood at BDT 11,051.86 million as of Wednesday.