Golden Harvest Agro Limited will raise a fund of Tk90 crore through the issuance of rights shares.
Bangladesh Securities and Exchange Commission approved the company's proposal on Tuesday, said a press statement issued by the regulator.
The rights issue is an offer of new shares by a company to its existing shareholders in proportion to the shares they already own. Rights share is usually issued at a discounted rate to the market price.
Golden Harvest will issue shares at a ratio of three rights shares for existing four shares at a face value of Tk10 each.
The company will raise Tk90 crore by issuing 8,99,32,342 rights shares.
The company will use this fund for the expansion of business, distribution channel, and repayment of bank loan.
The company was listed with stock market in 2013. The sponsor-directors own 33.03 percent stake in the company, while institutional investors own 45.61 percent, and general public own the rest 21.36 percent.
The Banco Finance & Investment Limited and the Alpha Capital Management are the issue managers of the company.