Dhaka, Bangladesh (BBN) – Rights subscription of IDLC Finance will begin on January 1, 2017, which will raise BDT 2.51 billion through rights issuance, said an official disclosure on Monday.
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.
The subscription of the rights issue will be continued till January 19, 2017.
The record date for entitlement of rights share of IDLC Finance is on December 15.
On November 22, the Bangladesh Securities and Exchange Commission (BSEC) approved IDLC Finance’s application to raise BDT 2.51 billion through rights issue.
The non-bank financial institution, which was listed 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 BSEC statement.
The raised fund will be used for strengthening IDLC’s capital so that it can scale up its SME, consumer and corporate lending. City Bank Capital Resources will be the issue manager.
IDLC’s earnings per share stood at BDT 5.81 as per last year’s audited financial statement and the net asset value per share BDT 30.97.
Each share of the company closed at BDT 57.80 on Sunday on the Dhaka Stock Exchange (DSE).
Sponsors hold 59.66 percent stakes in IDLC, institutions 23.21 percent, foreign investors 4.78 percent and general public the remaining 12.35 percent as on October 31, 2016, according to DSE data.
The company’s paid-up capital is BDT 2,513.67 million and authorized capital is BDT 10,000 million while total number of securities is 251,367,187.
BBN/AI/ANS