The Bangladesh Securities and Exchange Commission on Tuesday allowed United Power Generation and Distribution Company to raise Tk 237.60 crore from the capital market — 13 days after penalising the company, its issue manager and auditor for providing inappropriate information in its financial statement. The BSEC allowed UPGD to offload shares through the amended book-building system after it had completed bidding process setting offer price at Tk 72 including a premium of Tk 62 on each share, a BSEC release said on the day.
The BSEC meeting presided over by its chairman M Khairul Hossain issued the approval, it said.
The capital market regulator on October 29 fined UPGD Tk 2 lakh, LankaBangla Investments, issue manager of the company, Tk 1 lakh, Hoda Vasi Chowdhury and Company, the auditor of UPGD, Tk 2 lakh for providing inappropriate financial disclosures in its financial report for the year 2013.
The indicative price of the company was offered by the institutional investors based on the audited financial statement for the year ended on December 31, 2013, a senior BSEC official told New Age.
He said as the reporting glitch was not of that significant and there would be proper disclosures in the draft prospectus in that regard, the commission had decided to allow the company to float shares in the capital market.
Following regulatory approval on February 16, the UGPD held a road show and indicative price of the company’s share was set at Tk 60 considering price quotation of 28 institutional investors of six categories.
Institutional investors bed at Tk 72, the upper limit of bidding, to get 40 per cent shares of the company.
The UPGD will float 3.30 crore ordinary shares in the capital market to redeem preference shares, repay bank loan and to meet up IPO expenses, the BSEC release said.
As per the audited financial statement for the year ended on December 31, 2013, earning per share and net asset value per share of UPGD was Tk 5.98 and Tk 23.64 respectively, it said.
ICB Capital Management Limited is the registrar to the issue.
The commission in the meeting also allowed Southeast Bank to issue Tk 300 crore Subordinated Floating Rate Bond of seven-year maturity to meet up Basel II requirement of Bangladesh Bank, the BSEC release said.
Price of each unit of the bond will be Tk 10 lakh with the coupon rate of around 11.50 per cent to 14 per cent, it said.
-With New Age input
