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BSEC cancels Zaheen Spinning’s right share subscription

  • Published at 10:37 pm July 22nd, 2018
bangladesh-securities-and-exchange-commission-bsec-syed-zakir-hossain-1531594807822.jpg
The Bangladesh Securities and Exchange Commission office in Dhaka Syed Zakir Hossain/Dhaka Tribune

The decision was taken at a BSEC meeting presided by its Chairman M Khairul Hossain on Sunday

The Bangladesh Securities and Exchange Commission (BSEC) has canceled the right share subscription of Zaheen Spinning Limited after the company wanted BSEC to revise the offer of the right share ratio.

The decision was taken at a BSEC meeting presided by its Chairman M Khairul Hossain on Sunday.

The subscription date of Zaheen Spinning’s right share offer from July 29 to August 26 was cancelled after the meeting.

The company intended to raise its capital through issuing right shares at a ratio of 1:2 (one right share for two existing shares held on the record date).

BSEC also asked the company to resubmit an amended application complying with securities’ rules.

The company will modify their fund utilization plan and re-apply to the BSEC for their approval.

Earlier on March 07, the commission approved the right share offer of Zaheen Spinning Limited to issue one right share against an existing share of the company, allowing the company to raise Tk98.55 crore from the capital market.

The purpose of issuance of right share is to raise further paid up capital for expansion of the existing project, to meet the requirement of working capital and partial repayment of term loan of the company.

The company reported a value per share of Tk14.07 and earnings per share of Tk1.39 for the year ended on June 30, 2017.