Bangladesh Securities and Exchange Commission on Tuesday approved the initial public offering of Khan Brothers PP Woven Bag Industries Limited to raise fund worth Tk 20 crore floating its 2-crore shares at face value. The capital market regulators made the decision at a commission meeting presided over by its chairman M Khairul Hossain, a BSEC release said. Khan Brothers will use the IPO fund for purchasing mercenaries, building construction, repayment of bank loans, meeting up working capital requirements and IPO expenses.
The weighted average of last five years’ earring and net asset value per share of the company stands at Tk 0.87 and Tk 14.69 respectively.
AFC Capital and BMSL Investment are the issue managers of the company.
The BSEC on the day also allowed Trust Bank to issue a six-year subordinated bond worth Tk 200 crore with 12.50 per cent yield to maturity which will be fully redeemable, non-convertible and unsecured, the release said.
Trust Bank will use the fund to meet up the requirements of BASEL-II, capital adequacy of Tire-2 and to retain the current growth.
Institutional investors will be allowed to purchase the bond which will be fully redeemed after seven years.
The face value of each unit of the bond has been set at Tk 1 crore.
Besides, the commission decided to warn Dacca Dyeing & Manufacturing Company Limited due to company’s failure in submitting proposal of offering rights shares to the commission within 15 days of its decision, the BSEC release said.
The capital market regulatory body on the day also allowed Salek Textile Limited to transfer 8,26,087 shares of face value of Tk 100 each to Titas Spinning and Denim Company Limited.
Both the companies are subsidiaries of Malek Spinning Mills Limited which is a listed company with the capital market. The commission, however, did not disclose any further detail of EPS and NAV of any company related with the share transfer.
Salek Textile will issue one share of the company to the Titas Spinning against the latter’s 4.60 shares.
Malek Spinning Mills holds 97.50 per cent and 99.97 per cent shares of Salek Textile and Titas Spinning respectively, the release said.
Meanwhile, the commission also decided to form the office of chief accountant under its amended ordinance.
-With New Age input
