• Friday, April 18, 2014

Regulator green-lights textile IPO

Star Business Report

Bangladesh Securities and Exchange Commission yesterday gave the green light to Hwa Well Textiles (BD) to raise Tk 20 crore from the public.
The approval came at a meeting presided over by BSEC Chairman Khairul Hossain, the regulator said in a statement. Using the fixed price method, the textiles company is set to float 2 crore ordinary shares worth Tk 10 each.
Alfa Capital Management and Citizen Securities and Investment will manage the initial public offering, while proceedings will be used to purchase land and machinery, and construct new factory buildings.
The company's earnings per share as of June 2013 stood at Tk 3.66 with a net asset value per share of Tk 28.25.
Thirty-one textile companies are listed in the market.
BSEC also approved Premier Bank's proposal to issue non-convertible variable coupon rate bonds to raise Tk 200 crore through private placement.
The bank will offer 200 bonds at an issue price of Tk 1 crore each at an 11.5 percent annual coupon rate to raise the fund, which will be used to maintain the capital adequacy ratio under BASEL II requirements.

The bond will have a maturity period of two years, but it can be renewed for the next three years with a new (variable) coupon rate.
Race Portfolio and Issue Management will work as the financial adviser and sole lead arranger of Premier Bank's bond. Investment Corporation of Bangladesh (ICB) is the trustee. At yesterday's meeting, BSEC extended the maturity period of eight mutual funds, managed by ICB, up to December 2014. The regulator extended the time upon a request from ICB.
The eight mutual funds were supposed to be redeemed this year, in line with a regulatory directive.

Published: 12:00 am Wednesday, December 25, 2013

Last modified: 9:50 pm Wednesday, December 25, 2013

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