2 listed companies move to raise capital

Publicly listed companies, First Security Islami Bank Ltd (FSIBL) and Sonali Paper & Board Mills on Sunday announced their plans to raise capital by issuing right shares for business expansion. 

The decision came from the directors in their respective board meetings. 

Issuance of the shares is, however, subject to the approval of concerned regulatory bodies and complying with the other requirements embodied in relevant laws, said the notice published in the exchange websites. 

FSIBL aims to issue one right share for every two ordinary shares at Tk10 per share.

An amount of approximately Tk498 crore will be raised if the right shares are fully subscribed.

Sources said that the bank will put forward the proposition in an upcoming extra general meeting (EGM.)

The bank will use the fund to cope with the business growth and strengthen the capital base of the bank for maintaining adequate capital as required by the Bangladesh Bank. 

The date for the EGM has been set on October 27 while the record date for the meeting will be October 6.

Sonali Paper intends to issue one right share for every two ordinary shares at Tk10 per share after adjusting for the 20% stock dividend the company announced for the year ending on June 30, 2021.

An amount of approximately Tk11 crore will be raised if the right shares are fully subscribed, informed a stock broker. 

It will utilize the fund by procuring capital machinery as a part of reinvestment.

The date for the extra general meeting has been set on November 11 while the record date for the meeting will be October 7. 

Rezaul Karim, spokesperson and executive director of the Bangladesh Securities and Exchange Commission (BSEC), said that no proposal from FSIBL has come to them yet.

There is a process of issuing right shares. First the company will decide in their meeting. They will then apply for the right share issue within 15 working days, including the minutes of the meeting, he also said.

After considering the whole matter and paperwork, it will be allowed to decide how the money will be withdrawn from the stock market, Karim added.