Meghna Cement Mills Ltd has said the securities regulator gave it the permission to raise a capital of Tk 1.0 billion through issuance of 100 million preference shares.
Redeemable preference shares of Tk 10 each will be issued only to the existing sponsors/directors and “other than existing” shareholders of the company in cash consideration, according to an official disclosure on Monday.
“The preference shares shall be fully redeemable cumulative non-convertible and to be redeemed the principal amount by equal yearly installments commencing from the first year end from the date of subscription,” the disclosure added.
Earlier on March 11, 2019, the board of directors of Meghna Cement had decided to issue preference shares to its existing sponsor/directors of Tk 1.0 billion (100 million shares) only to raise its capital through private placement.
Each share of the cement maker, which was listed on the Dhaka Stock Exchange (DSE) in 1995, closed at Tk 72.60 on Sunday.
Its share traded between Tk 52 and Tk 94.40 in the past one year.
The company disbursed 10 per cent cash and 5.0 per cent stock dividend in 2019.
In nine months, the company’s earnings per share stood at Tk 0.65 for July-December 2019 as against Tk 0.70 for July-December 2018.
The net operating cash flow per share (NOCFPS) was Tk 13.19 in the negative for July-December 2019 as against negative Tk 21.36 for July-December 2018.
The net asset value (NAV) per share was Tk 31.31 as on December 31, 2019 and Tk 31.61 as on June 30, 2019.
The company’s paid-up capital is Tk 259.88 million and authorised capital is Tk 5.0 billion, while the total number of securities is 25.98 million.
The sponsor-directors own 49.76 per cent stake in the company, while institutional investors own 33.74 per cent, and the general public 16.50 per cent as on February 28, 2019, the DSE data shows.