BSEC approves revised public issue rules

Dhaka,  Thu,  24 August 2017
Published : 13 Jun 2017, 21:21:07
printer

BSEC approves revised public issue rules

It allows Aamra Networks to float IPO
BSEC approves revised public issue rules
FE Report


The securities regulator has revised public issue rules relaxing the provision of profitability for preceding two years to go public under fixed price method.

The regulator has also approved the IPO (initial public offering) proposal of Aamra Networks which will raise a capital worth Tk 562.50 million under book building method.

The approvals came at a meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).

At Tuesday's meeting, the securities regulator revised the public issue rules bringing some changes both in fixed price method and book building method.

As per the revised rules, a company willing to go public under fixed price method must have 'positive' net profit after tax and net operating cash flow calculated for last year of going public.

Previously, a company willing to raise funds from general public was supposed to have positive net profit after tax and net operating cash flow calculated for previous two years of going public.

The securities regulator revised the quota of eligible investors (EIs) allowing them to apply for two per cent shares of total amount offered for them under fixed price method.

As per Tuesday's decision, a company willing to go public under book building method must raise a capital worth Tk 500 million.

And the company must have a minimum paid-up capital of Tk 300 million instead of existing amount of Tk 150 million.

In case of fixing cut-off price, the EIs will be allowed to quote for 2.0 per cent shares of their respective quotas. Previously, the EIs were able to quote for 10 per cent shares of total shares allocated for respective quotas under book building method.

The regulator has reduced the amount of shares for EIs following the proposal of the stock exchanges. In its proposal, the premier bourse earlier said the cut-off price might be fixed through negotiation due to scope of quoting for 10 per cent shares by a single EI.

As per the Tuesday's approval, Aamra Networks will raise a capital worth Tk 562.50 million by offloading above 15 million shares under the book building method.

Meanwhile, the cut-off price of each ten taka share of the company has been fixed at Tk 39 through electronic bidding. Some 60 per cent or above 9.01 million shares of the company's total amount of shares will be issued to the EIs at cut-off price of Tk 39.

Remaining 40 per cent or above 6.02 million shares will be issued to general investors at 10 per cent discount on cut-off price. That means general investors will get shares of Aamra Networks at a price of Tk 35 each.

The Aamra Networks will use the IPO fund for repayment of bank loans, business expansion, setting up data centre and Wi-Fi Hotspot along with bearing IPO expenses.

As per the financial statement for the year ended on December 31, 2015 Aamra Networks reported net asset value per share (NAV) of Tk 21.98 per share. The company also reported earnings per share (EPS) of Tk 2.52 calculated based on weighted average of last five years.

mufazzal.fe@gmail.com
ADDRESS
Editor : A.H.M Moazzem Hossain
Published by the Editor for International Publications Limited from Tropicana Tower (4th floor), 45, Topkhana Road, GPO Box : 2526 Dhaka- 1000 and printed by him from City Publishing House Ltd., 1 RK Mission Road, Dhaka-1000.
Telephone : PABX : 9553550 (Hunting), 9513814, 7172017 and 7172012 Fax : 880-2-9567049
Email : editor@thefinancialexpress-bd.com, fexpress68@gmail.com
Copyright © 2017. All rights reserved
Powered by : orangebdlogo
close