Dhaka, Bangladesh (BBN) - Rights subscription of Bangladesh Thai Aluminum will begin on Thursday, which will raise BDT 523.34 million through rights issuance, officials said.
The rights subscription of the engineering sector company, which was listed with the Bangladesh’s stock exchanges in 1990, will continue until September 29.
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 stipulated time.
The securities regulator, Bangladesh Securities and Exchange Commission (BSEC), on June 20 approved the BD Thai’s application to raise BDT523.34 million through rights issuance.
As per the BSEC approval, the aluminum panel producer will issue 52.34 million rights shares of BDT 10 each.
The company offered one right share against each existing share. Citizen Securities and Investments is working as an issue manager of BD Thai's rights shares.
The funds to be raised will be used for enhancement of production capacity and loan repayment, according to the BSEC statement.
On the Dhaka Stock Exchange (DSE), the company's share price closed at BDT 24.10 on Tuesday. Trading of the shares of the company remained suspended Wednesday on record date.
The company’s paid-up capital is BDT 523.35 million and authorised capital is BDT 2,000 million, while the total number of securities is 52,335,028, the DSE data showed.
The sponsor-directors own 30.98 percent stake in the BD Thai Aluminum, while institutional investors own 13.55 percent, foreign stake holders 1.20 percent and the general public own 54.27 percent as of July 31, 2016.
BBN/AD/SR