Renata PLC Preference Shares (Convertible) — Simple Guide for Midway Clients

​Renata PLC, a prominent name in the pharmaceutical sector, has announced a major capital raising initiative. The company is seeking to raise BDT 3,250,000,000 (325 crore Taka) through the issuance of Non-Cumulative, Non-Participative, and Fully Convertible Preference Shares.

The subscription period is now officially open! If you held Renata ordinary shares on the Record Date (20 August 2025), you’re eligible to apply from 10:00 AM, 5 Oct 2025 to 4:30 PM, 9 Oct 2025.

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Snapshot (at a glance)

• Issuer: Renata PLC
• Instrument: Non-Cumulative, Non-Participative, Fully Convertible Preference Shares
• Size: BDT 3,250,000,000
• Who can apply: Only existing ordinary shareholders as of Record Date: 20 Aug 2025
• Subscription window: Opens 10:00 AM, Sun 5 Oct 2025 → Closes 4:30 PM, Thu 9 Oct 2025
• Minimum application: BDT 1,900 (= 190 preference shares; face value BDT 10 each)
• Lot Size: 190 lot 
• Maximum: No upper limit (subject to availability & allotment rules)
• Use of proceeds: Refinance existing debt, strengthen balance sheet & debt-equity ratio

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​1) First Right of Subscription (and how allotment works)

• 100% first offered to existing shareholders.
  
• Initial allotment is strictly proportional to your ordinary shareholding on the Record Date.
  
• If there’s any leftover after the first round, it’s re-allotted pro-rata based on extra applications.
  
• Miss the window = right renounced. If you don’t apply within the subscription period, your right is deemed renounced by law.
  

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​2) Fixed Dividend Policy — 15% (Non-Cumulative)

• Fixed rate: Up to 15% per annum.
  
• Payable only if the company posted sufficient NPAT (net profit after tax) in the immediately preceding financial year.
  
• Non-Cumulative: If a year’s dividend isn’t paid (insufficient profit), it doesn’t carry forward.
  
• Non-Participative: You only receive the fixed dividend (when payable). You don’t share in any extra profits paid to ordinary shareholders.
  

Plain example (illustration only): If you invest BDT 100,000, potential dividend is up to BDT 15,000 for that year provided Renata’s prior year profit meets the condition. If not, that year’s dividend is skipped and not accrued.

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​3) Conversion into Ordinary Shares (and dilution)

• Fully convertible into Renata ordinary shares.
  
• Schedule: Conversion starts at end of Year 3 and must be fully completed by end of Year 6.
  
• Pace: Indicative conversion 25% each year from Year 3 to Year 6.
  
• Conversion price: BDT 475 per ordinary share.
  
• Dilution effect: As new ordinary shares are created on conversion, existing ordinary holders who don’t participate may see ownership % and EPS diluted over time.
  

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​Should you consider applying? 

• Income-seeking? You may like the fixed 15% rate (when payable).
• Risk/return balance: Dividend depends on profit eligibility, and missed years don’t accrue.
• Equity upside later: You eventually convert into ordinary shares, which adds equity exposure (and market price risk).
• Dilution awareness: If you’re already a shareholder and don’t apply, your stake may dilute as conversions happen.

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​How to apply (via Midway Securities Ltd.)

Step 1 — Prepare details

• Confirm you were a Renata ordinary shareholder on 20 Aug 2025.
• Ensure you have matured (cleared) funds in your Midway account.

​Step 2 — Email your request
Send an email to [email protected] with the following:

Subject: Renata PLC – Convertible Preference Shares Subscription

Midway Client ID:
Number of lots:  (1 lot = 190 Preference Shares)
Total amount (BDT):

I confirm I held Renata ordinary shares on 20 Aug 2025 (Record Date) and have matured funds available.

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​This Renata PLC preference share offer gives eligible shareholders a fixed-rate income potential (subject to profits) plus a path to equity via conversion. If you plan to participate, don’t wait—the window is short and rights lapse after the deadline.