Premier Cement to raise Tk 310cr via preference shares

The Premier Cement Mills Limited will raise Tk 310.75 crore from the capital market through fully redeemable, non-convertible cumulative preference shares.

The company’s preference shares proposal was approved on Tuesday, according to a statement of   Bangladesh Securities and Exchange Commission (BSEC).

The fund raised through the preference share would reduce the company’s restructuring balance sheet, and financial expenses, and improve profits, it said.

The face value has been fixed at Tk 25 lakh per share while the coupon rate ranges from 6.25 per cent to 7.75 per cent with a five-year tenure.

The sponsor directors will contribute Tk 75 crore of the fund while the remaining Tk 235.75 crore will be collected from the potential investors through the private placement.

Preference shares are shares of a company's stock with dividends that are paid out to shareholders before common stock dividends are issued. Most preference shares have a fixed dividend, while common stocks generally do not.

Its share price dropped 0.17 per cent to Tk 57.90 on the Dhaka Stock Exchange on Tuesday.