The stockmarket regulator yesterday approved the IPO prospectuses of a cement producer and a plastic goods manufacturer.
The Securities and Exchange Commission also gave green light to three listed companies to offer rights shares and another one to issue preference shares.
SEC Executive Director Anwarul Kabir Bhuiyan made the disclosure after its meeting, chaired by Ziaul Haque Khondker, chairman of the market watchdog.
MI CEMENT IPO
MI Cement Factory Ltd, manufacturer of Crown Cement, will float three crore ordinary shares of Tk 10 each using the book building method, a modern pricing mechanism for initial public offering (IPO).
The indicative price of each MI Cement share has already been fixed at Tk 93. Now under the book building system, eligible institutions will be allowed to quote 20 percent up or down from the indicative price for each share. It means investors will be allowed to offer prices between Tk 74.40 and Tk 111.60.
The cement maker will raise fund through the IPO for business expansion.
Earning per share (EPS) of MI Cement as of 2009 was Tk 1.27 and net asset value (NAV) per stock was Tk 15.78.
The company will be the eighth listed cement manufacturer on Bangladesh stockmarket.
DESHBANDHU POLYMER IPO
Deshbandhu Polymer Limited, a leading plastic bag manufacturer, will float 1.6 crore primary shares of Tk 10 each using the fixed price method. It means the company will raise a Tk 16 crore fund from share offloading.
With the IPO proceeds, the company will go for BMRE (balancing, modernisation, renovation and expansion).
Deshbandhu Polymer, the existing paid-up capital of which is Tk 24 crore, produces woven bags and other kinds of bags needed mainly in poultry feed plants, fertiliser factories, cement, foodgrains and chemical factories.
The EPS of Deshbandhu Polymer, as of April, was Tk 3.47.
Presently, Sinobangla, National Polymer and Miracle Industries are the listed companies that are involved in production of plastic goods.
AL-ARAFAH BANK'S RIGHTS OFFER
Al-Arafah Islami Bank will offer one rights share for every one share at a price of Tk 100.
The bank will issue the shares to raise its paid-up capital to match with BASEL-II requirement.
GOLDEN SON'S RIGHTS OFFER
Golden Son will also offer one rights share for every one share at a price of Tk 30, including Tk 20 as premium.
The company will use the raised fund for business expansion, including financing its projects solar-based lighting and computer casing manufacture.
JAMUNA BANK'S RIGHTS OFFER
Jamuna Bank will offer one rights share for every three shares at a price of Tk 100 each.
The bank will issue the shares to raise its paid-up capital in line with BASEL-II requirement.
PEOPLE'S LEASING PREFERENCE SHARE
The People's Leasing and Financial Services Ltd will issue 12 crore fully convertible preference shares of Tk 10 each.
On conversion to tradable shares, there will be a lock-in period of one year.