Trading of Renata PLC’s preference shares began today on the Alternative Trading Board (ATB) of the Dhaka Stock Exchange (DSE). The company’s preference shares were included in the ATB trading list at 10:00am on Monday.

With this, the number of listed securities on the DSE’s ATB platform has risen to two. However, no transactions took place in Renata’s preference shares during the first half hour of trading. The indicative price of the shares has been set at Tk 1,900.

With approval from the Bangladesh Securities and Exchange Commission (BSEC), Renata PLC recently issued Tk 3.25 billion worth of preference shares. The proceeds from the issue will be used to repay bank loans.

According to disclosures, the Tk 3.25 billion preference shares are non-cumulative—meaning unpaid dividends will not carry forward and non-participative. Preference shareholders will receive an annual return of 15 percent, independent of the company’s profit. The tenure of the preference shares is six years, and from the third to the sixth year, 25 percent of the shares will be converted into ordinary shares each year. Eventually, all preference shares will be converted into ordinary shares at a conversion price of Tk 475.

Renata received final approval from the BSEC for issuing the preference shares in July this year, followed by shareholder approval at an extraordinary general meeting (EGM) held on September 20.

The ATB was launched to expand the overall scope of the capital market by offering a low-cost and simplified platform for ownership transfer, particularly for companies not listed on the main board. The aim is to attract quality companies to the primary market over time. Despite this objective, only four securities have so far been listed on the ATB platforms of the country’s two stock exchanges.

The ATB board of the DSE was launched on January 4, 2023, through brokerage house LankaBangla Securities. On the Chattogram Stock Exchange (CSE), two bonds issued by IFIC Bank are currently listed on the ATB.