BSEC has approved the IPO (initial public offering) proposal of BBS Cables, which will raise Tk 200 million fund under fixed price method. The approval came at a commission meeting of BSEC Thursday.
BBS Cables will offload 20 million shares at an offer price of Tk 10 each to raise Tk 200 million fund. The fund will be used for acquisition of plant and machineries, building and other civil works, partial loan repayment and bearing IPO expenses.
As per the financial statement for the year ending on June 30, 2016, the company's earnings per share (EPS) and net asset value (NAV) are Tk 2.46 and Tk 16.87 respectively without revaluation. Banco Finance and Investment and ICB Capital Management are working as managers of BBS Cables.
BSEC also approved Tk 5.0 billion subordinate bond, to be issued by Dutch-Bangla Bank Limited (DBBL). The tenure of the non-convertible subordinate bond will be seven years. The bank will raise the fund through issuing bond to strengthen its capital base.
Meanwhile, the listed companies will have to take prior approval of at least 51 per cent public shareholders, if they want to bring any 'deviation' in the conditions, set for use of funds raised through public issue and rights issue.
Bangladesh Securities and Exchange Commission (BSEC) set this new condition along with the existing ones for use of funds raised from the shareholders.
The regulatory decision came in the meeting, as a number of companies were found changing use of fund proceeds, leaving their shareholders in darkness.
Under Section 2CC of the Securities and Exchange Ordinance 1969, the securities regulator sets some conditions in prospectus for use of funds, raised through public issue and rights issue.
On Thursday, BSEC set the condition of taking prior approval of shareholders in case of any deviation in use of public fund.
"Any deviation in this regard must have prior approval of at least 51 per cent of public shareholders, other than sponsors and directors, in a general meeting," said the securities regulator.
BSEC also mentioned that before the said general meeting, such deviation as recommended by the board of directors will have to be published as price sensitive information with detailed description and reasons for the deviation.
"If approved by the shareholders, the meeting resolution will be submitted to the commission along with reasonable explanations for approval."
After such approval, such decision will be published as price sensitive information, added the securities regulator.
Mohammad Saifur Rahman, BSEC executive director, said the condition of taking the shareholders' approval has been imposed, so that the companies cannot change use of fund proceeds without their shareholders' approval.
"From now on no company will be able to bring any deviation in use of fund proceeds without taking approval from the shareholders," Mr Rahman further said.