The Bangladesh Securities and Exchange Commission yesterday gave a go-ahead to Hamid Fabrics to raise Tk 105 crore from public.
Using the fixed price method, the textile company is set to float 3 crore ordinary shares of Tk 10 each at an offer price of Tk 35, including Tk 25 as premium.
ICB Capital Management would manage the initial public offering (IPO), the proceedings from which would be used to service Hamid Fabrics' existing bank loans and fund business expansion.
The company's five-year weighted average earnings per share, as of June 2013, stood at Tk 2.97 and the net asset value per share Tk 41.14 after revaluation. The approval came at a meeting presided over by BSEC Chairman Khairul Hossain, the stockmarket regulator said in a statement.
Also at yesterday's meeting, the BSEC fined two stockbrokers -- Tk Tk 5 lakh for Global Securities and Tk 2 lakh for Finvest Services -- for breaching securities rules.
The regulator also imposed fines of Tk 5 lakh each on Dragon Sweater and Spinning, which applied for an IPO, and its issue manager First Securities Services for providing false information in the prospectus.
The BSEC also suspended issue management activities of First Securities Services for the next one year. The regulator permitted Investment Corporation of Bangladesh to raise Tk 1,054.68 crore by issuing 2.10 crore rights shares at an offer price of Tk 500, including Tk 400 as premium.
The ICB will offer one rights share for existing two shares and will use the proceeds for loan repayment and investment in primary and secondary stockmarket.
A rights issue is an issue of additional shares by a listed company to raise capital from existing shareholders.
With a rights issue, the existing shareholders get the privilege to buy a specified number of new shares from the firm at a particular price within a specified time.
The BSEC also gave approval to Active Fine Chemicals to raise Tk 120 crore capital through issuing 2 crore shares of Tk 10 each at an offer price of Tk 60, including Tk 50 as premium, at yesterday's meeting.
The company will raise the capital from existing shareholders in addition of ICB and/or other institutional investors through private placement. The issued shares will be locked in for three years.
In another move, the regulator approved LankaBangla Finance's proposal of issuing a Tk 300 crore non-convertible zero coupon bond through private placement.
The face value of each unit of the bond, which will have a maturity period of six months to three years, will be Tk 1,000.