A rights offering is effectively an invitation to existing shareholders to purchase additional new shares in the company. In other words, by way of rights offering the company is giving shareholders a chance to increase their exposure to the stock at a discount price. National Polymer intends to float 3.6 crore shares at Tk 15 each with a premium of Tk 5. The market interest in the issuer's common stock generally peaks when rights offering is announced, meaning existing shareholders can see the value of their holdings soar. National Polymer logged in a profit of Tk 15 crore for its 2019-20 financial year, down 18.1 per cent year-on-year.

Source: Dhaka Tribune December 15, 2020 18:59 UTC