Mir Akhter Hossain Ltd to hold EGM for preference share issuance

Mir Akhter Hossain Limited, a construction company, is set to hold an extraordinary general meeting (EGM) to secure shareholder approval for two key agendas—the issuance of preference shares and an increase in its authorised capital.

The EGM is scheduled for 8 February and will be held through a hybrid system, combining both online and physical presence at the Abacus Convention Centre in Dhaka.

The company will also seek shareholder approval to raise Tk250 crore for repaying loans, issuing preference shares, and increasing its authorised capital to Tk450 crore from Tk200 crore, with Tk200 crore allocated for ordinary shares of Tk10 each and Tk250 crore for preference shares of Tk10 each.

In line with this, the company plans to amend its memorandum of articles and articles of association.

In December of last year, Mir Akhter Hossain Ltd unveiled its plan to raise Tk250 crore through preference shares to repay its outstanding loans and borrowings.

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.

The preference shares will not be included in 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.

Mir Akhter Hossain to raise Tk125 crore through an initial public offering (IPO) in 2021 to expand its business, purchase equipment, and repay bank loans.

The cut-off price for Mir Akhter shares was set at Tk60 each after the bidding process.

On Thursday, its shares closed 0.69% lower at Tk29.10 each on the Dhaka Stock Exchange.