Envoy Textiles to issue preference shares

|| Published: 2020-03-04 04:31:03 || Updated: 2020-03-04 04:31:03

Envoy Textiles will raise a capital worth Tk 870 million issuing cumulative preference shares to expand business and repay high cost debt.

The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved the company’s proposal of issuing preference shares at a meeting held at BSEC office.

The tenure of the preference shares will be five years while the characteristics are non-convertible, fully redeemable and unlisted.

Envoy Textiles will issue cumulative preference shares to institutional investors, banks, financial institutions, insurance companies and eligible investors through private placement.

The company will utilise the fund for the purpose of expansion and repayment of high cost debt.

The offer price of the preference shares, which will be issued to institutional investors, is Tk 10 million.

On the other hand, the shares will be issued to eligible investors at an offer price of Tk 5.0 million each.

NDB Capital is working as issue manager of the preference shares to be issued by Envoy Textiles.

Envoy Textiles, presently an ‘A’ category company, was listed on the stock exchanges in 2012.

The company’s share price closed at Tk 25 each on Tuesday with a rise of 0.40 per cent or Tk 0.1 on the Dhaka Stock Exchange (DSE).

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