Rahima Food Corporation Ltd will resume the trading of its shares at the Dhaka Stock Exchange (DSE) from today – after a break of more than two years.
The country's main bourse took this decision following the directives of the Bangladesh Securities and Exchange Commission (BSEC).
Each share of the company will be traded at Tk175, which was the reference opening price of the company at the port city's bourse – the Chittagong Stock Exchange (CSE) – on Monday.
Previously, on 19 July, 2018, the DSE delisted Rahima Food from share trading because the company was not in operation for a long time.
However, the CSE just suspended the company's share trading instead of delisting it from the bourse.
Later in November, the BSEC sought an explanation from the DSE for delisting Rahima Food. It also issued a directive to the CSE to withdraw its suspension order immediately.
Therefore on 12 November this year, the port city bourse withdrew its suspension order.
An official of the premier bourse said the DSE board approved the resumption of Rahima Food's share trading under the 'A' category.
Meanwhile, the share price of Rahima Food rose by 9.97% to Tk194.1 each at the CSE on Monday.
According to company sources, Rahima Food is likely to resume its business operations seven years after it halted food production.
City Group, a leading conglomerate and consumer goods manufacturer in Bangladesh, is helping the corporation make a comeback in business by acquiring 37.38% of its shares.
The new management reformed by City Group decided to set up a coconut oil producing plant. The company has restructured its factory made of steel at a cost of Tk5.47 crore. Production is likely to start in March-April of 2021.
Rahima Food was incorporated in 1990 and listed in the stock market in 1997.
According to the audited financial report for the year ended 30 June this year, the company's loss per share was Tk1.20 and its net asset value per share was Tk9.57.
The company's management did not recommend any dividend for its shareholders for the fiscal year 2019-2020.
Rahima Food's paid-up capital is Tk20 crore. Its sponsors and directors hold 37.38% shares, institutions 20.67%, foreign investors 4.99%, and general investors 36.96% of the company.