Regulator okays Shasha Denims IPO, fines three for irregularities
Bangladesh Securities and Exchange Commission yesterday approved the IPO (initial public offering) proposal of Shasha Denims, which aims to raise Tk 175 crore from the public.
The approval came at a meeting at the commission's office in the capital.
The denim producer will offload five crore ordinary shares at an offer price of Tk 35, including a premium of Tk 25 for each Tk 10 share.
The company will raise the fund to expand business, repay bank loans and bear the expenses of the IPO proceedings.
According to the audited financial reports for the year that ended on December 31, 2013, the company's earnings per share stand at Tk 3.73, while its net asset value is Tk 52.95.
AFC Capital and Imperial Capital will manage the issue for Shasha.
The stockmarket regulator also imposed a fine of Tk 50 lakh on Shamim Ahmed, executive director of Sylhet Metro City Securities (SMCS), for swindling money from clients' portfolios.
The regulator blocked all his beneficiary owner's accounts until further notice. He is also barred from involvement in any profession related to the stockmarket.
The BSEC asked the Chittagong Stock Exchange to work on repaying the SMCS clients within November 30. Another investigation into SMCS is still going on.
The regulator has fined Argon Denims Tk 30 lakh and Salvo Chemical Industry Tk 5 lakh as they misused IPO funds. Both the companies are also barred from raising further capital from the market for the next three years.
The securities regulator has formed a committee to develop a guideline for the non-performing companies at the over-the-counter market.
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