FE Report
Initial public offering (IPO) subscription of BBS Cables begins today (Tuesday) while the rights subscription of IFIC Bank will start on May 31, officials said.
The IPO subscription of BBS cables will continue till June 4 for resident and non-resident Bangladeshis.
Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of electric wires manufacturer on April 13 to raise Tk 200 million from the public using the fixed price method. The company will float 20 million ordinary shares of Tk 10 each.
A market lot is 500 shares and an investor needs Tk 5,000 to apply for one lot of shares.
The required amount (per lot) of foreign currency for NRBs and foreign applicants for IPO of the company are US$ 61.58 or GBP 47.99 or EUR 56.73, according to Dhaka Stock Exchange (DSE).
The company will use the IPO proceeds for acquisition of plant and machinery, partial repayment of bank loans and IPO expenses.
The company's earnings per share (EPS) stood at Tk 2.46 and net asset value (NAV) without revaluation per share at Tk 16.87 in June last year.
Banco Finance & Investment and ICB Capital Management are jointly working as issue managers of the IPO.
Located at Sreepur in Gazipur, BBS Cables is equipped with state-of-the-art technology to manufacture and test all types of quality cables, wires and conductors.
BBS Cables is a concern of Bangladesh Building Systems, which was listed on the capital market in October 2013. Each share of Bangladesh Building Systems closed at Tk 48 on DSE Monday.
Meanwhile, the rights subscription of IFIC Bank will begin on May 31, which will raise nearly Tk 5.64 billion through issuance rights shares.
The rights issue is an offer of new shares by a company to its existing shareholders in proportion to the shares they already own and usually at a discount to market price.
The bank's rights subscription will be continued till June 29. The bank will issue one rights share for one existing share at par.
On March 16, the securities regulator approved IFIC Bank's application to raise nearly Tk 5.64 billion through rights issue.
The bank, which was listed on the Dhaka bourse in 1986, will issue nearly 564 million rights shares of Tk 10 each without premium to strengthen capital base as per the requirement of Basel-III.
Basel III is a comprehensive set of reform measures developed by the Basel Committee on Banking Supervision to strengthen regulation and supervision and reduce risks of the banking sector globally.
ICB Capital Management Limited is acting as the issue manager.
IFIC Bank, which was listed on the stock exchanges in 1986, recommended 12 per cent stock dividend for the year ended on December 31, 2016. In 2015, the bank also disbursed 12 per cent stock dividend.
The bank's paid-up capital is nearly Tk 5.64 billion and authorised capital is Tk 20 billion, while the total number of securities is nearly 564 million.
The sponsor-directors own only 6.57 per cent stake in IFIC Bank, while the government owns 32.75 per cent, institutional investors 22.72 per cent, foreign investors 1.75 per cent and the general public 36.21 per cent as of April 30, 2017, the DSE data shows.
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