Salvo Chemicals to reapply to BSEC for capital increase

Business Report :

Salvo Chemicals Industries Ltd has announced plans to reapply to the Bangladesh Securities and Exchange Commission (BSEC) for approval to increase its paid-up capital by issuing new shares to its sponsors and directors.
In a disclosure to the stock exchange today (8 December), the company proposed a new price of Tk16 per share, which includes a Tk6 premium, compared to its previous proposal of Tk10 per share.
The share price of the company closed at Tk24.30 on the Dhaka Stock Exchange on Sunday.
Earlier in October, the BSEC had rejected Salvo Chemicals’ request to raise Tk6.40 crore by issuing 64 lakh shares to its existing sponsors and directors at Tk10 per share.
In May this year, Salvo Chemicals, a producer of basic industrial chemicals, had aimed to raise its paid-up capital by issuing the shares to its existing sponsors and directors through a private placement for cash consideration.
When the company decided to issue fresh shares at face value, share prices at the secondary market were Tk50 each. Later, its share prices gradually declined below Tk30 each.
According to the DSE, as of 30 November 2024, the sponsors and directors jointly hold 25.18% of the company’s shares, while institutional investors hold 7.54%, and general investors hold the rest 67.28%.
In February this year, the BSEC granted Salvo Chemicals one year to achieve a minimum holding of 30% in the company.