Dhaka, Bangladesh (BBN)– Rights share subscription of LankaBangla Finance started today (Sunday) which will be raised more than BDT 1.59 billion through rights issuance.

A rights issue is an issue of additional shares by a listed company to raise capital from existing shareholders.

With a rights issue, existing shareholders get the privilege to buy a specified number of new shares from the firm at a particular price within a specified time.

LankaBangla Finance, which received regulatory approval from the securities regulator on October 31, will issue one rights share against two existing shares at per.

The firm will issue 159,125,470 ordinary shares of BDT 10 each and the raised the said amount to comply with the condition 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.

AFC Capital is working as manager to the rights issue of LankaBangla Finance.

LankaBangla also showed healthy earnings per share in the third quarter for July-September period of 2017 compared to the same quarter of the previous year.

The earnings per share (EPS) increased to BDT 1.31 in July-September period of this year from BDT 0.16 in the same period last year, according to DSE data.

In nine months for January-September, 2017, the company’s consolidated earnings per share (EPS) stood at BDT 3.31 as against BDT 1.05 for January-September, 2016.

Consolidated net asset value (NAV) per share was BDT 23.01 as of September 30, 2017 and BDT 21.01 as of December 31, 2016.

Consolidated net operating cash flow per share (NOCFPS) was BDT (6.15) for January-September, 2017 as against BDT 1.15 for January-September, 2016.

Each share of the company, which was listed on the Dhaka bourse in 2006, closed at BDT 50.10 on Thursday, the last trading session of the week.

BBN/SSR/SR