Zaheen Spinning gets IPO go-ahead
Bangladesh Securities and Exchange Commission gave the green light to Zaheen Spinning to raise Tk 12 crore from the public.
The yarn manufacturer will float 1.2 crore ordinary shares of Tk 10 each to raise funds for plant and machinery purchase.
MTB Capital will manage the initial public offering (IPO), which was approved at a meeting on Wednesday. The company's earnings stood at Tk 1.01 and net asset value at Tk 12.59 per share on June.
At present, 36 textile companies are listed on the Dhaka Stock Exchange, accounting for around 5 percent of the total market capitalisation. The BSEC also approved the application of First Security Islami Bank to raise Tk 205.72 crore through a rights issue.
A rights issue is an issue of rights to a company's existing shareholders that entitles them to buy additional shares directly from the company in proportion to their existing holdings within a fixed time period.
First Security Islami Bank, which has been listed on the stock exchange since 2008, will issue 20.57 crore rights shares of Tk 10 each to its existing shareholders.
One rights share will be offered for existing two shares and the raised fund will be used for increasing the company's paid-up capital base.
Also on Wednesday's meeting, the BSEC fined directors of Shahjibazar Power Company Tk 10 lakh each for disclosing inflated earnings per share in the company's quarterly reports.
The stockmarket regulator also imposed a Tk 5 lakh penalty on the listed firm's managing director for the same offence.
In the third quarterly report, Shahjibazar Power had announced Tk 2.54 as EPS for the June-March period. But the BSEC found the EPS to be Tk 1.48 after a special audit into the company's financials, the regulator said in a statement.
In addition of the financial penalties, the commission also referred the power generating company's chief financial officer to the enforcement department.
In another move, the BSEC fined United Power Generation and Distribution Company Tk 2 lakh for furnishing false information in financial statements, which were submitted with initial public offering application. United Power showed 'income tax payment' as outflow instead of inflow in the cash flow statements.
The regulator also fined United Power IPO's issue manager, LankaBangla Investments, Tk 1 lakh and auditor, Hoda Vasi Chowdhury and Co, Tk 2 lakh on the same ground. Island Securities was also fined Tk 1 lakh on charges of short-selling of shares, which is a violation of securities rules.
Some 2,200 Bangladesh Submarine Cable shares were traded from the stockbroker on March 7 last year through short-selling, which is the sale of a stock that an investor or a brokerage or a dealer does not own.
In another move, the BSEC allowed four listed banks to raise Tk 1,000 crore through issuing different types of bonds and the fund will be used for fulfilling the requirements of Basel-II.
Prime Bank will issue non-convertible subordinated bonds worth Tk 250 crore and Jamuna Bank Tk 200 crore worth fully redeemable, non-convertible and unsecured subordinated bonds.
Bank Asia will issue non-convertible subordinated bonds worth Tk 300 crore and Eastern Bank Tk 250 crore worth of non-convertible subordinated bonds.