Dragon Sweater to issue rights share

FE Online Report | Published: May 23, 2018 11:48:37 | Updated: May 25, 2018 10:31:43


The board of directors of Dragon Sweater and Spinning Limited has decided to issue rights share for expansion of the company’s existing project.

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 board has decided to raise a capital worth more than Tk 881 million through rights shares at Tk 10 each, according to a disclosure on Wednesday.

The company will offer two rights shares for existing three shares, according to the disclosure.

The rights issue, however, is subject to approval of the shareholders in the extraordinary general meeting (EGM) and Bangladesh Securities and Exchange Commission (BSEC) and other regulatory authorities.

The EGM will be held on July 2 at 1:00am at the Imperial Convention Center in Dhaka.

The record date for the EGM is on June 6. Another record date will be declared for rights issuance after getting approval from the BSEC.

There will be no price limit on the trading of the shares of the company today (Wednesday) following its corporate declaration.

Each share of the company, which was listed on the Dhaka bourse in 2016, closed at Tk 20.30 on Tuesday.

The company’s un-audited earnings per share (EPS) stood at Tk 0.66 for January-March 2018 as against Tk 0.16 for January-March 2017.

In nine months for July 2017-March 2018, EPS was Tk 1.75 as against Tk 1.04 for July 2016-March 2017.

The net operating cash flow per share (NOCFPS) was Tk 1.70 for July 2017-March 2018 as against Tk 0.39 for July 2016-March 2017.

The net asset value (NAV) per share was Tk 15.62 as on March 31, 2018 and Tk 13.67 as on June 30, 2017.

In 2017, the company disbursed 15 per cent stock dividend.

The sponsor-directors own 37.84 per cent stake in the company, the institutional investors 24.19 per cent and the general public 37.97 per cent as on April 30, 2018, the DSE data shows.

The company’s paid-up capital is Tk 1.32 billion and authorised capital is Tk 1.50 billion and the total number of securities is 132.25 million.

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