Mir Akhter to raise Tk250cr with preference shares
Mir Akhter Hossain Limited – a construction company – plans to raise Tk250 crore through preference shares to repay its outstanding loans and borrowings.
According to a stock exchange filing, the preference shares will be redeemable, cumulative, and non-participative.
To secure shareholders' approval, the company has scheduled an extraordinary general meeting for 8 February, with the record date set for 14 January. Additionally, the plan will require regulatory approval.
As of September, Mir Akhter's total loans and borrowings, including current and non-current liabilities, amounted to Tk1,470 crore, according to its unaudited financial statement for the July-September quarter.
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The preference shares will not be added to the company's ordinary shares and will not be counted in its earnings per share (EPS). Preference shares entitle shareholders to receive dividends before ordinary shareholders.
While preference shareholders are not considered company owners, they have priority over ordinary shareholders regarding dividend payments and redemption rights in the event of bankruptcy.
A senior officer of the company told The Business Standard that the tenure and return ratio of the preference shares have yet to be determined, as a team is still working on it.
Earlier in April this year, Mir Akhter planned to raise Tk300 crore through a bond issuance. However, it later decided to pull out of the plan, according to company sources.
In November 2020, the Bangladesh Securities and Exchange Commission (BSEC) approved Mir Akhter Hossain to raise Tk125 crore through an initial public offering (IPO) under the book-building method to expand its business, purchase equipment, and repay bank loans.
The cut-off price of Mir Akhter shares was set at Tk60 each after the bidding process.
In March 2022, the securities regulator approved the issuance of the Mir Akhter Zero Coupon Bond worth Tk249.90 crore to refinance debt and increase capital equipment.
On Sunday, its shares closed 0.94% down at Tk31.60.
From July to September 2024, the company's consolidated revenue dropped by 50%, to Tk37.67 crore from Tk74.83 crore during the same period in the previous year.
During this time, its consolidated net profit after tax fell by 15%, to Tk2.80 crore compared to the same period in the previous year. Its consolidated earnings per share stood at Tk0.23, while its net asset value per share was Tk50.32 as of the end of September 2024.
In FY24, the company recommended a 10% cash dividend for its shareholders. During the year, its revenue stood at Tk268.74 crore, while its profit after tax amounted to Tk30.04 crore.
In the annual report for FY24, Managing Director Mir Nasir Hossain said the company is currently working on 21 projects, with a total value amounting to Tk8,013 crore.
Some of its notable projects include the Dhaka-Sylhet National Highway, the development of Shah Amanat International Airport, the construction of a bridge over the Payra River, and numerous road projects across the country.
