Hamid Fabrics is going to be the first company to collect initial public offering subscription fees through brokerage houses and merchant banks as it will offload shares this month, BSEC officials said. Merchant banks and brokerage houses will start the IPO fee collections of Hamid Fabrics on September 28 and will continue till October 2. As many as 285 institutions, including 174 brokerage houses of the Dhaka Stock Exchange, 73 of the Chittagong Stock Exchange and 37 merchant banks, will be allowed to collect the IPO fees in the pilot project, they said.
Along with the new process, the existing process of collecting IPO fees through banks will also continue until abolishment of the existing process.
After successful completion of the pilot project, the Bangladesh Securities and Exchange Commission will make its decision regarding the existing process.
As per the new process, merchant banks and brokerage houses will open a bank account named ‘public issue application account’ to keep the IPO fund that will be collected from the investors. After the deadline of fund submission banks will issue a certificate to the merchant banks or brokerage
houses regarding the fund blocked under the public issue application account.
Within three working days of subscription closing, merchant banks or brokerage houses will have to submit IPO applicants’ data to the issuer company in the hard and soft version.
The data will be checked by the Central Depository Bangladesh Limited before the IPO lottery.
Investors, who will not get the IPO shares, will be allowed to withdraw their subscription fees after the lottery.
Overseas investors, however, will also be allowed to submit IPO fees through banks as well as through brokerage houses and merchant banks.
Once the IPO subscription process through the brokerage houses starts in full fledge, it will take around 25 days to get the refund, the official said.
The BSEC in August approved the initial public offering of Hamid Fabrics to issue three-crore shares at the price of Tk 35 each with a premium of Tk 25.
Hamid Fabrics will raise Tk 105 crore and will spend the money for repayment of loan and expansion of business.
According to the audited financial account of the company for 2013, the earning per share is Tk 2.97 and its net asset value is Tk 41.41.
July 15 this year was the earlier timeline for the project set by the stock market regulator.
-With New Age input
