BSEC approves preference shares of Premier Cement

Bangladesh Securities and Exchange Commission (BSEC) has approved preference shares of Premier Cement Mills.

The commission came up with the approval at a meeting today, according to a press release.

Preference shares are shares of a company's stock with dividends that are paid out to shareholders before common stock dividends are issued. Most preference shares have a fixed dividend, while common stocks generally do not.

Preferred stock shareholders also typically do not hold any voting rights, but common shareholders usually do.

The cement maker would raise funds of Tk 310.75 crore through issuing fully redeemable, non-convertible, non-participating and cumulative preference shares.

Of the fund Tk 310.75 crore, around Tk 235.75 crore would be issued to potential investors whose tenure would be five years, the BSEC said in the press release.

Rest around Tk 75 crore would be issued to sponsors or directors whose tenure would be 12 years, it said.

The dividend rate of the preference shares that would be issued to investors through private placement ranges from 6.25 per cent to 7.75 per cent.

And, the dividend rate for the sponsors' fund is zero. With the preference shares proceeds, the cement company will rearrange its balance sheet, reduce expenditure, raise profits and improve its performance indicators.