The Bangladesh Securities and Exchange Commission on Tuesday approved the initial public offering of Hwa Well Textiles (BD) Ltd to raise fund worth Tk 20 crore for the company’s business expansion. The BSEC issued approval in a regular commission meeting presided over by its chairman M Khairul Hossain. Hwa Well Textiles will float 2 crore ordinary shares through the IPO at an issue price of Tk 10 each share.
The company will use the IPO fund to purchase machinery, land including development, build new factory building, change the existing machinery and meet up the IPO expenses, said a BSEC release.
Hwa Well Textiles in its annual statement for the year ended on June 30, 2013 showed earning per share of Tk 3.66 and net asset value per share at Tk 28.25.
Alpha Capital Management and Citizen Securities and Investment are jointly acting as the issue manager of Hwa Well Textiles.
The commission on the day also allowed Premier Bank to raise capital worth Tk 200 crore through issuing ‘non-convertible variable coupon rate bond’ which will be matured after two years of issuance, the release said.
The coupon rate of the bond has been set at 11.50 per cent with additional three years of renewal scope and the rate of the coupon will be variable in case of renewal.
The prices of each unit has been set at Tk 1 crore which will be issuable to individual or institutions other than existing shareholder of Premier Bank.
Premier Bank will use the fund to comply with the conditions of Bangladesh Bank under Basel II and to preserve the capital adequacy ratio.
RACE Portfolio and Issue Management and Investment Corporation of Bangladesh are jointly working as Financial adviser, sole lead arranger and trustee of the issue.
-With New Age input
