The Bangladesh Securities and Exchange Commission on Tuesday approved the initial public offering of Far East Knitting and Dyeing Industries to raise fund worth Tk 67.50 crore floating its 2.50-crore shares. As per the BSEC approved, the offer price of each share of the company has been set at Tk 27 including premium of Tk 17 on each share, a BSEC release said.The capital market regulator approved the IPO in a regular commission meeting presided over by its chairman M Khairul Hossain.
Far East Knitting will use the IPO fund for the organisation’s balancing, modernisation, rehabilitation, expansion, repayment of the term loan and meeting up the IPO expenses.
As per the company’s last five-year weighted average of financial statements, the earning per share stands at Tk 3.28 and the re-valued net asset value per share at Tk 19.08.
IDLC Investments is the issue manager of the company.
The BSEC on the day also approved a seven-year ‘Coupon-Bearing Subordinate Bond’ of Mercantile Bank worth Tk 300 crore, the release said.
The bank will use the fund to meet up its Tier-II requirement and increase capital adequacy ratio as per the BASEL-II, the BSEC said.
Individuals except the existing shareholders of the bank, non-bank financial institutions, corporate entities, insurance companies, asset management companies, mutual funds, merchant banks and individuals with high net worth will be illegible to avail the bond.
The face value of each lot of the bond has been set at Tk 10 lakh and coupon rate of the bond will be between 12 per cent and 15 per cent.
The capital market regulator on the meeting allowed Bangladesh Development Bank to redeem its First BSRS Mutual Fund and asked the BDBL to follow Section 54 of the Mutual Fund Rules 2001 for the redemption process.
As per the audited financial statement of the fund, unit holders’ will get Tk 105.32 against each unit of the fund.
The commission on the day also approved the draft trust deed and asset management contract of UFS Unite Fund, an open-ended mutual fund, worth Tk 10 crore under the Universal Financial Solutions, an asset management company.
Bangladesh General Insurance Company and BRAC Bank will work as the trustee and custodian of the unit fund accordingly, the BSEC release said.
-With New Age input
