Stock market to get Tk 100cr from stabilisation fund
The stock market regulator yesterday approved an Investment Corporation of Bangladesh (ICB) investment of Tk 100 crore from a capital market stabilisation fund to ensure liquidity in the secondary market.
The decision came in a Bangladesh Securities and Exchange Commission (BSEC) meeting at its building in the capital chaired by Chairman Prof Shibli Rubayat Ul Islam.
The BSEC in June passed a rule that formed the fund using undistributed and unclaimed dividends of listed companies. The aim is to use the funds to safeguard the interests of the stock market and general investors.
The meeting also approved a closed end mutual fund of Tk 50 crore sponsored by the stabilisation fund.
ICB Asset Management Company is the manager of "Shuborno Joyonti Fund", having a tenure of 10 years and planned marking the country's 50 years of independence.
For the celebrations, the BSEC also decided to award the top-performing market intermediaries -- stock broker, merchant bank and asset management company.
The meeting sanctioned formation of two open ended mutual funds -- Bangladesh Race Management Private Fund and HF Asset Management Limited Shariah Unit Fund – each of Tk 25 crore.
Each company, whose names the funds have taken after, would each sponsor Tk 2.5 crore of their respective funds, having a face value of Tk 10, while general investors would subscribe to the rest.
The meeting approved an initial public offering (IPO) of JMI Hospital Requisite Manufacturing to raise Tk 75 crore in funds to buy equipment and a building, develop land and repay loans.
They company's share price would be determined through bidding among institutional investors as it sought premium over its face value of Tk 10.
Its net asset value per share was Tk 29.99 while five years' weighted average earnings per share Tk 2.42 after the financial year ending on June 30, 2020.
The JMI's paid-up capital was Tk 90 crore. It will issue shares to general investors at 20 per cent discount on the cut-off price.
The company will not be allowed to announce and provide any dividend before listing with the stock exchanges. Its issue manager is Janata Capital and Investment.
From now, any issuer company will not be allowed to provide inter-company loans, said the BSEC.
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