Bangladesh Securities and Exchange Commission on Tuesday approved Ratanpur Steel Re-Rolling Mills Limited’s initial public offering of Tk 100 crore at an issue price of Tk 40 per share including a premium of Tk 30. The BSEC made the decision in a regular meeting presided over by its chairman M Khairul Hossain. Through the IPO process, RSRM will float 2.50 crore shares of the company in the capital market to
raise fund for repayment of bank loans, and to meet running capital requirement and IPO expenses, a BSEC release said.
According to the RSRM’s financial statement for the year ended on June 30 last year, the waited average earning per share of the company was Tk 4.58 and revalued net asset value was Tk 53.69 crore.
Janata Capital and Investment Limited and Trust Bank Investment are the issue managers of the company.
Besides, the commission on the day also allowed City Bank Limited to issue Tk 300 crore non-convertible coupon bearing subordinate bonds with six years of tenure to meet capital adequacy ration under the Basel two requirements. Value of each unit of the bond was set at Tk 10 lakh.
The bank will offer 2.50 per cent extra coupons above the six month’s average deposit rate at any private commercial bank, BSEC release said.
Any investors other than the existing shareholders of the bank would be be able to hold the bonds in the form of private placement, it said.
IDLC Finance and Trust Bank are the mandated lead arranger and trustee of the fund respectively.
-With New Age input
