IPO of Shahjibazar Power, rights offer of BRAC Bank approved

The securities regulator Wednesday approved the IPO (initial public offering) proposal of Shahjibazar Power and the rights offer of the BRAC Bank, officials said.

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

The BSEC has also asked all BO (beneficiary owner's) account holders to update required information by January 31, 2014 through their respective depository participants (DPs) in a bid to bring a change in the process of receiving applications for IPO (initial public offering).

As per the BSEC approval, the Shahjibazar Power will offload 12.68 million ordinary shares at an offer price of Tk 25, including a premium of Tk 15 for each ten share.

Under the fixed price method, the company will raise a fund worth Tk 317.0 million to repay the bank laons.

As per the financial statement for the year ended on march 31, 2013 the company's earning per share (EPS, weighted) and net asset value (NAV) are Tk 2.54 and Tk 24.58 respectively.

AAA Consultants and Financial Advisers has been appointed the issue manager of the Shahjibazar Power.

The BRAC Bank will issue one rights share against two existing shares at an offer price of Tk 20, including a premium of Tk 10 to raise a fund worth over Tk 44.33 billion to strengthen the company's capital base.

At Wednesday's meeting, the securities regulator has also approved the changed name of the First Agrani Bank Mutual Fund (FABMF).

As per the regulatory approval, the FABMF will get registration in the name of ICB AMCL First Agrani Bank Mutual Fund.

The regulator Wednesday also imposed a penalty worth Tk 1.0 million on Reliance Brokerage Services for breaching securities rules.
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