Home ›› 26 Aug 2022 ›› Stock
The Bangladesh Securities and Exchange Commission (BSEC) has turned down the rights offered by the First Security Islami Bank Limited (FSIBL) due to the bank’s failure to form a nomination and remuneration committee.
“The BSEC is not in a position to consider the application for approval of the issuance of rights shares of the bank due to a failure to form nomination and remuneration committee (NRC), an increase in the number of outstanding shares for payment of stock dividend for the year 2021 and shares of the bank are trading near to face value in August 2022,” said the bank in a regulatory filing on Thursday.
The bank applied for the issuance of rights shares at a ratio of 1:2 (one right share for existing two shares) at an issue price of Tk 10 each.
A rights offer refers to the issue of additional shares by a listed company to raise capital from existing shareholders. FSIBL decided to increase its paid-up capital by issuing rights shares on September 19, 2021, to strengthen its capital base as well as maintain adequate capital as required by Bangladesh Bank.
Listed in 2008, the bank’s share prices on Thursday rose 1 per cent to over Tk 10 on the Dhaka Stock.
The bank’s consolidated earnings per share (EPS) was Tk 0.87 for January-June 2022 as against Tk 0.49 for January-June 2021. Of the total stake, sponsor-directors hold 33.02 per cent, institutional investors 28.53 per cent, foreign 1.52 per cent, and the general public 46.93 percent As of July 31, 2022.
On June 3, 2020, the Bangladesh Securities and Exchange Commission also refused approval for AB Bank’s rights share offer.
