Peninsula Chittagong allowed to float IPO

The securities regulator has approved the IPO (initial public offering) proposal of the Peninsula Chittagong and the rights offer of Generation Next Fashions, officials said.

The regulator has allowed the United Power Generation and Distribution Company (UPGDC) to conduct the bidding of 33 million shares for the purpose of going public under book bui8lding method.

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

At Tuesday's meeting the regulator also set a condition to audit the status report of the utilisation of the listed companies' funds by 'foreign affiliated auditors'.

As per the new condition, the listed companies will have to submit the audited report of the utilisation of the funds, raised through IPO, RPO (repeated public offer) and rights offer, to the commission on quarterly basis.

A senior BSEC official said the regulator has moved to tighten the rules to curb the misuse of funds by the listed companies.

At the same meeting, the securities regulator withdrew 30-day share selling obligation for the placement shareholders, other than sponsor shareholders or directors, after their lock-in period is over.

Under the fixed price method, the Peninsula Chittagong, a hotel situated in Chittagong, will offload 55 million ordinary shares at an offer price of Tk 30, including a premium of Tk 20 for each Tk 10 share, to raise a fund worth Tk 1.65 billion.

As per the company's prospectus, the fund will be utilised for the company's expansion and along with setting up two new hotels near Chittagong Airport.

In accordance with the financial statement for the year ended on June 30, 2013, the company's earning per share (EPS) and net asset value (NAV) are Tk 2.49 and Tk 32.73 respectly.

The UPGDC will go public to offload 33 million ordinary shares under the book building method.

28 eligible institutional investors selected under six categories have supported the indicative price of Tk 60, including a premium of Tk 50 for each ten taka share.

As per the financial statement for the year ended on December 31, 2012, the UPGDC's EPS is of Tk 10.21.

In accordance with the regulatory approval, the Generation Next Fashions will issue two rights shares against three existing shares at an offer price of Tk 10 for the purpose of BMRE and loan repayment.

At Tuesday's meeting the securities regulator approved the draft prospectus of the CAPM Unit Fund, an open-end mutual fund.

The total size of the fund is Tk 100 million, of which Tk 10 will be collected from sponsors and the remaining Tk 90 million will be collected from general investors.

The offer price of the mutual fund is of Tk 100 each and the Capital and Asset Profile Management is the fund manager of the CAPM Unit Fund.
Share on Google Plus

About Jessica Hornberger

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.
    Blogger Comment
    Facebook Comment