S Alam Steels, Aftab Auto get SEC nod to issue preference shares

Two companies, S Alam Cold Rolled Steels and Aftab Automobiles, got the nod of the Securities and Exchange Commission(SEC) to issue 5.33 million and 18 million preferenceshares respectively, company sources said.

S Alam will issue the 5.33 million preference shareswith 6 per cent interim dividends as per decision of the company taken in its EGM on December 12 last. Each share will have a face value of Tk 100.

The preference shares will be converted into ordinary shares and will remain locked-in for one year from the date of issuance.

A half of the shares will be converted on May 2 at 30 per cent discount on the basis of their weighted average price during the period from the record date to April 20.

The remaining shares will be converted on August 1 at 30 per cent discount on the basis of their weighted average price during the period from the record to July 31.

The 6 per cent dividend will be paid in two quarters. In the first quarter, an interim dividend of 3.0 per cent will be paid on April 2 and the remaining 3 per cent interim dividend of the second quarter will be paid on August 1. Their record dates will be April 30 and July 31 respectively.

On the other hand, Aftab Automobiles will issue 18 million preference shareswith 5 per cent interim dividends. Each share will have a face value of Tk 100.