(FE Report)The securities regulator has approved the IPO (initial public offering) proposal of Aman Feed, which will raise Tk 720 million to expand its business and shore up capital, officials said.
The Bangladesh Securities and Exchange Commission (BSEC) has also asked the stock exchanges to continue trading of 1st ICB Mutual Fund (MF), whose maturity period ended on March 31 last until no new order is issued.
The decisions were taken at a commission meeting held Thursday.
Under the fixed price method, Aman Feed will offload 20 million ordinary shares at an offer price of Tk 36, including a premium of Tk 26 for each Tk 10 share.
The company will expand its business, repay long term loan and bear the cost of IPO processing with the fund raised from public.
The company's earning per share (EPS) and net asset value (NAV) per share are Tk 4.97 and Tk 30.77 respectively, according to the company financial statement that ended on June 30, 2014.
LankaBangla Investment is the issue manager of Aman Feed.
As per regulatory directive, eight MFs including the 1st ICB MF managed by the Investment Corporation of Bangladesh (ICB) will have to be redeemed in different phases.
The tenure of the 1st MF ended on March 31 and no trading of the units of the fund took place till Thursday as the regulator could not reach any final decision.
Meanwhile, the ICB has again sought time extension for its funds. And the regulator has sought legal opinion with regard to extension of term of ICB's MFs.
Under such a situation, the BSEC Thursday asked the stock exchanges to continue trading of the units of 1st ICB MF until further instruction.
At the meeting held Tuesday, the securities regulator imposed penalties of Tk 0.1 million and Tk 0.7 million on Fareast Stocks & Bonds and Holy City Securities respectively for breaching securities rules.
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