Mohammad Mufazzal
Fourteen companies lining up to make initial public offering will have to wait a bit longer as the newly recast securities regulator has adopted a cautious approach to approve their proposals, officials said Tuesday.
According to the Securities and Exchange Commission (SEC), the companies have sought to raise three billion taka from the market with ten firms planning to go public through the fixed price method.
But their fate now hangs in the balance as the recent stock crash prompted the newly appointed SEC chairman and three new members to take time to scrutinise the proposals and examine their financial details.
"The new commission has just settled in. I don't think that they will be in a hurry to approve the IPO proposals although some of them are very good companies with solid financial health," said an official.
He said lack of new IPOs in recent months has "obviously" affected the country's two stock markets, but the SEC has decided "to take extra cautions on the new issues and pore over the proposals as thoroughly as possible."
No IPO was approved in the last six months due to stock market debacle in December and January and its prolonged after-effect.
The securities regulator was also busy unveiling one rule after another to stem the market slide and steady its course.
The SEC official said presently the regulator is giving priority to IPOs seeking to raise fund through fixed price method following a ban on new listing under the controversial book building method.
Another official said the SEC has recently examined the IPO proposals of three companies and found "flaws" in their financial details.
The three firms have been asked to submit more information, he said, adding: "The regulator will give approve the IPOs only when all the requirements will be fulfilled."
The companies seeking IPO approvals are: Rangpur Dairy and Food Products, Central Depository Bangladesh Limited (CDBL), Surid Industries, Jahintex, Energy Prima, Aamra Technology, Crystal Insurance, GSP Finance and Padma Islami Life Insurance.
Among the firms, Rangpur Dairy has valued its ten taka share at Tk 22, including a premium of Tk 12. It plans to raise Tk 163.4 million from the two stock markets.
CDBL seeks to raise Tk400 million by selling its share at an offer price of Tk60, including a premium of Tk 50.
Surid Industries will raise Tk 140 million with each of its shares being priced at ten taka each. It has not demanded any premium price on its shares.
Jahintex Industries plans to sell each of its ten taka shares at an offer price of Tk 30, including a premium of Tk 20. It plans to raise Tk 200 million from the market.
State-owned Bangladesh Shipping Corporation (BSC) has submitted also proposal to raise Tk 627.4 million by offering shares under Repeat Public Offering (RPO).
http://www.fe-bd.com/more.php?news_id=138502&date=2011-06-08
Fourteen companies lining up to make initial public offering will have to wait a bit longer as the newly recast securities regulator has adopted a cautious approach to approve their proposals, officials said Tuesday.
According to the Securities and Exchange Commission (SEC), the companies have sought to raise three billion taka from the market with ten firms planning to go public through the fixed price method.
But their fate now hangs in the balance as the recent stock crash prompted the newly appointed SEC chairman and three new members to take time to scrutinise the proposals and examine their financial details.
"The new commission has just settled in. I don't think that they will be in a hurry to approve the IPO proposals although some of them are very good companies with solid financial health," said an official.
He said lack of new IPOs in recent months has "obviously" affected the country's two stock markets, but the SEC has decided "to take extra cautions on the new issues and pore over the proposals as thoroughly as possible."
No IPO was approved in the last six months due to stock market debacle in December and January and its prolonged after-effect.
The securities regulator was also busy unveiling one rule after another to stem the market slide and steady its course.
The SEC official said presently the regulator is giving priority to IPOs seeking to raise fund through fixed price method following a ban on new listing under the controversial book building method.
Another official said the SEC has recently examined the IPO proposals of three companies and found "flaws" in their financial details.
The three firms have been asked to submit more information, he said, adding: "The regulator will give approve the IPOs only when all the requirements will be fulfilled."
The companies seeking IPO approvals are: Rangpur Dairy and Food Products, Central Depository Bangladesh Limited (CDBL), Surid Industries, Jahintex, Energy Prima, Aamra Technology, Crystal Insurance, GSP Finance and Padma Islami Life Insurance.
Among the firms, Rangpur Dairy has valued its ten taka share at Tk 22, including a premium of Tk 12. It plans to raise Tk 163.4 million from the two stock markets.
CDBL seeks to raise Tk400 million by selling its share at an offer price of Tk60, including a premium of Tk 50.
Surid Industries will raise Tk 140 million with each of its shares being priced at ten taka each. It has not demanded any premium price on its shares.
Jahintex Industries plans to sell each of its ten taka shares at an offer price of Tk 30, including a premium of Tk 20. It plans to raise Tk 200 million from the market.
State-owned Bangladesh Shipping Corporation (BSC) has submitted also proposal to raise Tk 627.4 million by offering shares under Repeat Public Offering (RPO).
http://www.fe-bd.com/more.php?news_id=138502&date=2011-06-08
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