Bangladesh Securities and Exchange Commission (BSEC) has approved the proposal of the Dhaka Electric Supply Company (DESCO) to issue 607.6 million preference shares at Tk 10 each to the government against a share money deposit.
The stock market regulator, at a meeting with its Chairman Professor Shibli Rubayat Ul Islam in the chair, on Sunday also approved the proposals of the qualified investor offers (QIO) of Doar Services PLC and Brain Station 23 PLC.
With BSEC approval, DESCO received Tk 607.69 crore from the government as a share money deposit for its annual development plan.
Against this fund, the state-owned power distributor is issuing irredeemable, non-cumulative preference shares in favour of the secretary of the Power Division under the Ministry of Power, Energy, and Mineral Resources.
The dividend will be determined by multiplying the ratio of preference share capital out of the total capital (ordinary share capital plus preference share capital) by 15 per cent of the profit after tax.
DESCO suffered a loss of Tk 195 crore in the first six months (July-December of 2023) of FY2023–24 due to foreign exchange fluctuations and a sharp fall in distribution revenue.
The publicly traded company incurred a net loss of Tk 195.43 crore during this period, against a profit of Tk 8.19 crore in the corresponding period in the last fiscal year, according to the second quarter report.
DESCO, the company responsible for electricity distribution in the capital's west and northeastern areas, reported earnings per share (EPS) of Tk 4.92 for the July-December period of FY24, whereas EPS was Tk 0.21 for the same period of FY2022-23.
DESCO shares closed at Tk 24 each on the Dhaka Stock Exchange on Sunday.
At Sunday’s meeting, the BSEC approved the proposal of the QIO of Brain Station 23 PLC, which will raise a fund of Tk 5 crore.
Brain Station 23 received approval to issue five million ordinary shares at a price of Tk 10 per share to eligible investors.
The small-cap company will raise this capital to create long-term financing opportunities in the SME sector.
Aiming to create long-term financing opportunities, the approved capital will be spent on computer and IT equipment and issue management costs.
According to the company's financial statements for the period July 1, 2023, to September 30, 2023 (three months), EPS are Tk 1.92 and net asset value (NAV) per share is Tk 19.28.
LankaBangla Investments Limited has been entrusted with the responsibility of managing the issue.
Brain Station 23 is a home-grown software development company providing state-of-the-art software and IT solutions for fintech, telco, eCommerce, pharma, manufacturing, retail, etc. industries both locally and globally since 2006.
Currently, the company is providing software and IT solutions to over 25 countries, with active partners in Germany, the US, Norway, the Netherlands, Canada, Australia, Japan and South Africa.
On Sunday, BSEC also approved the proposal of the QIO of Doar Services, which will raise a fund of Tk 5 crore.
Doar Services received approval to issue five million ordinary shares at a price of Tk 10 per share to eligible investors, according to a BSEC circular.
The small-cap company will raise this capital to create long-term financing opportunities in the SME sector.
Aiming to create long-term financing opportunities, the approved capital will be spent on issue management costs, including product development (door school management software, de-courier, call centre and tracking systems, and AI software), cloud computing, and ancillary costs.
According to the company’s financial statement as of June 30, 2023, EPS are Tk 4.86 and NAV per share is Tk 17.85.
Alpha Capital Management Limited has been entrusted with the responsibility of managing the issue.
