BBS Cables gets IPO green light

Bangladesh Securities and Exchange Commission yesterday gave the green light to BBS Cables, a sister concern of Bangladesh Building Systems, to raise Tk 20 crore from the public.

The manufacturer of electric wires will float two crore ordinary shares of Tk 10 each through an initial public offering, the stockmarket regulator said in a statement.

The company will use the IPO proceeds for acquisition of plant and machinery, and partial repayment of bank loans.

Its earnings per share stood at Tk 2.46 and net asset value without revaluation per share at Tk 16.87 in June last year. Banco Finance and Investment and ICB Capital Management will jointly manage the IPO.

Located at Sreepur in Gazipur, BBS Cables is equipped with state-of-the-art technology to manufacture and test all types of quality cables, wires and conductors.

The BSEC also allowed Dutch-Bangla Bank to raise Tk 500 crore by issuing non-convertible subordinated bonds. The fund will be used to fulfil the requirements of Tier-II regulatory capital.

The bonds will have a maturity period of seven years.

The face value of the bond -- which can be issued to only commercial banks, non-bank financial institutions, insurance companies, corporate houses and high-net-worth individual investors through private placement -- will be Tk 1 crore per unit.

In another development, the regulator fined directors and managing directors of Amam Sea Food Industries, Rose Heaven Ball Pen Industries and Chic Tex Tk 1 lakh each for breaching securities rules.

The BSEC also imposed a condition of getting 51 percent shareholders' prior consent for issuing right shares by listed companies.