Dhaka, Bangladesh (BBN)– Bangladesh’s securities regulator on Wednesday approved IFIC Bank’s application to raise more than BDT 5.63 billion through rights issue.
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 approval came at a meeting presided over by Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor M Khairul Hossain.
One rights share will be offered for existing one existing share, the Bangladesh’s securities’ regulator said in a statement.
The bank, which was listed in 1986, will issue above 563 million rights shares of BDT 10 each without premium to strengthen capital base as per the requirement of Basel-III.
Basel III is a comprehensive set of reform measures developed by the Basel Committee on Banking Supervision to strengthen regulation and supervision and reduce risks of the banking sector globally.
ICB Capital Management Limited will be the issue manager.
At the Dhaka Stock Exchange (DSE), the bank’s share price hovered between BDT 26.60 and BDT 28.40, before closing at BDT 26.80 on Wednesday, losing 3.25 percent over the previous day.
In nine months for January-September 2016 period, consolidated earnings per share (EPS) stood at BDT 2.10 as against BDT 1.72 for January-September, 2015.
IFIC Bank, which was listed on the Dhaka bourse in 1986, disbursed 12 percent stock dividend for the year ended on December 31, 2015.
The bank’s paid-up capital is nearly BDT 5.64 billion and authorised capital is BDT 20 billion, while the total number of securities is 563,821,907. The bank’s total market cap stood at BDT 15.62 billion as on Wednesday.
The sponsor-directors own 8.48 percent stake in IFIC, while the government owns 32.75 percent, institutional investors 23.21 percent, foreign investors 1.08 percent and the general public 34.48 percent as on February 28, 2017, the DSE data shows.
At the Wednesday’s meeting, the BSEC also approved BDT 3.0 billion zero coupon bond to be issued by IPDC Finance Limited. The tenure of the non-convertible zero coupon bond will be five years. The face value of each unit of the bond will be BDT 1.0 million each.