The Bangladesh Securities and Exchange Commission on Sunday cancelled the subscription of Zaheen Spinning Limited’s right offer after the company intended to revise the offer.
The subscription which was scheduled for July 29-August 26 was suspended at a commission meeting held at the office of the BSEC.
BSEC sources said the company now intended to raise capital through issuing right shares at a ratio of 1:2 (one right share for two existing shares held by its shareholders on the record date) instead of the previous ratio of 1:1.
The regulator also asked the company to resubmit the amended application complying securities rules.
The company would also modify fund utilisation plan and soon reapply to the commission for approval.
Earlier, on March 7, the commission approved rights offer of Zaheen Spinning allowing it to issue one rights share against an existing share of the company for raising Tk 98.55 crore from the capital market.
The purpose of the issuance of rights share was to raise further paid-up capital for expansion of the existing project, to meet the requirement of working capital and to repay partially term loan of the company.
The company reported net asset value per
share Tk 14.07 and earnings per share Tk 1.39 for the year ended on June 30, 2017.
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