Renata PLC, a leading pharmaceutical company in Bangladesh, has announced plans to issue non-cumulative, non-participative, redeemable, or fully convertible preference shares valued at up to Tk 325 crore.
The company stated in a disclosure on the Dhaka Stock Exchange (DSE) website today that the primary objective of the issuance is to refinance existing loans. The issuance is subject to shareholder approval at an extraordinary general meeting (EGM) scheduled for January 12, 2025, and regulatory consent from the Bangladesh Securities and Exchange Commission (BSEC).
Preference shares, also known as preferred stock, give shareholders priority in dividend payouts before common stock dividends are distributed. These shares often attract investors seeking more stable returns, though they do not typically grant voting rights like common shares.
Following the announcement, shares of Renata PLC declined slightly by 0.33% to Tk 638 during midday trading on the DSE.
