News Flash
DHAKA, Dec 15, 2025 (BSS) - The Dhaka Stock Exchange (DSE) today commenced trading of preference shares issued by Renata PLC on its Alternative Trading Board (ATB).
This milestone event, attended by DSE Chairman Mominul Islam and Renata PLC Managing Director and CEO Syed S Kaisar Kabir, signifies the successful listing of a new product type in Bangladesh’s capital market, said a press release.
The listing was formalized earlier with the signing of an agreement at the DSE Training Academy in Nikunja by Mohammad Asadur Rahman, FCS, DSE’s Chief Operating Officer and Acting Managing Director, and Syed S Kaisar Kabir representing Renata PLC.
The commencement of trading for Renata’s preferred shares is recognized as an important precedent for the country's capital market, as it marks the first time preferred shares have been listed as an equity security on the DSE’s Alternative Trading Board.
Mohammad Asadur Rahman, FCS, noted that preferred shares are characterized as "hybrid securities," possessing features of both equity and debt.
The DSE ATB was specifically formed to provide a listing opportunity for such hybrid instruments beyond ordinary shares, thus adding a new dimension to capital raising.
Renata PLC issued these preferred shares as a conscious strategy to manage its financial structure following a period of unexpected fiscal challenges.
Syed S Kaisar Kabir, Renata’s MD and CEO, revealed that a sudden and substantial currency devaluation significantly increased the company's planned investment expenditure from approximately preferred Taka 1,000 crore to nearly Taka 1,500 crore.
This rapid shift compelled the company to rely on debt, despite previously being virtually debt-free.
To resolve this issue while maintaining its leverage ratio and balancing equity and debt, Renata opted for preferred shares. This choice was preferred over a rights issue, which would have substantially diluted the ownership of majority shareholders.
Preferred shares were deemed a suitable solution because they do not carry voting rights and participation does not lead to significant ownership dilution.
Kabir emphasized that preferred shares are an effective method of risk sharing, as there is no obligation to pay dividends if the company does not generate a profit.
Renata PLC raised a total of Taka 325 crore through the private placement of these preferred shares.
The shares are non-cumulative, non-participative, and are fully convertible into ordinary shares. Each preferred share is valued at Taka 1,900. The tenure of the shares is six years, from the subscription completion date of October 19, 2025, through 2031.
Conversion will happen in four annual phases starting from the end of the third year, at a conversion price of Taka 475 per share. The listed price of Taka 1,900 will consequently decrease by Taka 475 annually from the end of the third year as conversions occur.
On the unconverted portion, preferred shareholders are entitled to a fixed annual dividend of 15 percent, provided the company has sufficient net profit after tax.
Kabir noted that this effective return has become highly attractive to investors.
He expressed optimism that Renata’s financial standing, once characterized by being debt-free and having strong net margins, would visibly improve within the next one to two years by reducing the pressure of debt.
DSE Chairman Mominul Islam addressed the crucial need for the capital market to be used more actively to reduce dependency on banks.
He noted that global and domestic macroeconomic pressures, including post-COVID-19 consequences, geopolitical instability, currency devaluation, and rising interest rates, have weakened the financial foundations of many well-managed institutions, increasing their debt burden.
He stated that instruments such as preferred shares and bonds can serve as effective, recurring funding mechanisms for large corporations.
He expressed hope that Renata's positive example will encourage other corporate entities to gradually reduce debt pressure and regain financial stability.
