MJL to raise Tk 609 crore
The Securities and Exchange Commission on Thursday approved Mobil Jamuna Limited Bangladesh’s Tk 609 crore initial public offering, the biggest ever IPO in the country’s capital market.
The commission, at a meeting presided over by its chairman Ziaul Haque Khondker, also approved IPOs of MI Cement and Salvo Chemicals and right offers of Eastern Insurance.
‘The new issues will help to cool down the market, increasing supply of shares to the market,’ SEC executive director ATM Tariquzzaman told reporters.
The MJL Bangladesh IPO will topple a Tk 486.08-crore Grameenphone IPO from the top seat.
MJL Bangladesh will raise Tk 609 crore by issuing 4 crore shares through book building method with an indicative price of Tk 152.40 for each share. The face value of the company’s share is Tk 10 each. Prime Finance and Investment is the issue manager of the company’s IPO. The paid up capital of the company is Tk 140 crore.
MI Cement will raise Tk 334 crore through issuing an IPO under the book building method with an indicative price of Tk 111.60 per share against the face value of Tk 10. The company will float three crore shares for public subscription. As of April 30, 2010, the company’s net asset value was Tk 15.78 per share and earning per share was Tk 1.27.
Salvo Chemicals will offload shares worth of Tk 26 crore. The face value of the shares of the company is Tk 10 each. The company’s authorised capital is Tk 50 crore and paid up capital Tk 14.30 crore. Salvo Chemicals will follow the fixed price method for floating its IPO.
The SEC approved the right offers of Eastern Insurance at a ratio of 1:1 with Tk 300 each share including a premium of Tk 200 each.
The SEC also decided that from now on a company would require 15 days to be listed with the stock exchanges completing all procedures under the book building system of IPO, said Tariquzzaman.
Earlier, a company required 45-55 days to complete procedures to be listed under the system, he added.
