IFIC's right offer bid scrapped

The Bangladesh Securities and Exchange Commission (BSEC) has cancelled the right offer proposal of IFIC Bank due to the bank's inability to appoint an underwriter.

The cancellation was announced in a disclosure posted on the Dhaka Stock Exchange (DSE) website on Tuesday.

A rights issue is an invitation to existing shareholders to buy more shares at rates discounted or lower than the market price.

IFIC had been struggling with its fresh right issue plan as the bearish market had kept share prices of the company below the face value of Tk 10, which the bank did not anticipate.

In May 2019, the bank's board of directors had decided to issue a right share for every existing share at an offer price of Tk 10 each to raise paid-up capital and meet future capital requirement.

Later in August that year, they revised the ratio to issue one rights share for existing four shares instead.

On July 30, the company revised the plan for the third time, reducing the ratio of right shares to every five shares.

After the shareholders approved, the bank applied to the BSEC for right offer approval.

The bank’s shares closed at Tk 10.50 yesterday, trading session, down 0.94 per cent from the previous day.