The stockmarket regulator yesterday gave the green light to the issue of
Tk 1,025 crore worth of shares by three unlisted companies and one listed one, setting a record for new securities values arriving in a single day.
A Securities and Exchange Commission (SEC) meeting approved the moves, which include the largest-ever initial public offering (IPO) by state-run Mobil Jamuna Lubricants (MJL) Bangladesh Ltd's public offering of
Tk 609 crore.
Before this, the largest was the
Tk 486 crore IPO of mobile phone operator Grameenphone last year, an SEC spokesman said.
The two unlisted companies that received permission to float shares are MI Cement, which will make a public offering of Tk 334 crore, and Salvo Chemicals Industry Tk 26 crore.
The SEC also gave the nod to Eastern Insurance, a listed company, to raise Tk 56 crore by offering one rights share for each existing share.
"We are happy that we gave the nod to a record number of new securities issuance with the value of more than Tk 1,000 crore," said Farhad Ahmed, the executive director of the SEC.
"The new securities will help in mitigating the mismatch between supply and demand in the stockmarket," he added.

MOBIL JAMUNA IPO
The fuel company will float four crore ordinary shares worth Tk 10 each in face value using the book-building method.
The cut-off price, or IPO price, of each MJL share has been fixed at
Tk 152.40 through bidding by institutional investors. It means an individual will have to apply with Tk 15,240 for a market lot of 100 MJL shares.
With the IPO proceeds, MJL will set up a liquefied petroleum unit, a crude oil refinery and buy land for its corporate office.
The existing paid-up capital of the state company is Tk 140 crore, and post IPO paid-up capital will be Tk 180 crore.
Its annualised earnings per share (EPS) is Tk 3.53, and net asset value (NAV) per share is Tk 11.73.
Prime Finance and Investment Ltd is the issue manager of the IPO.
EC Securities Ltd, an investment firm of East Coast Group, owns 75 percent of the company, while state-run Jamuna Oil Co 25 percent.
MJL controls nearly 26 percent share in domestic oil market and has pioneered exports and shipment of lubricants. It has grown steadily since 2007. Last year its exports went up 58 percent after peaking at 453 percent in 2008.
Incorporated as a private limited company in 1998, it began commercial journey in 1999. It started producing advanced lubricants products in 2003.
Of some 240 energy and power companies operating in Bangladesh, only 11 are listed on the bourses. BOC Bangladesh, Padma Oil, Eastern Lubricant, BD Welding, Summit Power, Desco, Power Grid, Jamuna Oil, Meghna Petroleum, Titas Gas and Khulna Power are among them.

MI CEMENT IPO
MI Cement Factory Ltd that makes Crown brand cement will raise Tk 334 crore floating three crore ordinary shares of Tk 10 each using the book-building method.
The cut-off price for each share has been fixed at Tk 111.60, meaning an individual will have to apply with Tk 11,160 for a market lot of 100 shares.
With the funds raised, the cement maker will expand its business.
The EPS of MI Cement as of 2009 was Tk 16 and NAV per stock was Tk 15.78.
MI Cement will be the sixth cement maker in the stockmarket.

SALVO CHEMICALS IPO
The sulphuric acid manufacturer will raise Tk 26 crore floating 2.6 crore primary shares of Tk 10 each under the fixed-price IPO method.
The EPS of Salvo Chemicals is
Tk 0.91, existing paid up capital is Tk 14 crore, and NAV per share is
Tk 18.89.
The company will use the IPO proceeds to finance its expansion and repay loans.
There are now nine pharma-ceuticals and chemicals companies listed on the bourses.

EASTERN INSURANCE RIGHTS
Eastern Insurance will offer one rights share against each existing share at an offer price of Tk 300, including Tk 200 as premium.

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