Dhaka, Bangladesh (BBN)-The Bangladesh securities regulator on Monday approved the IPO (initial public offering) proposal of Dragon Sweater and Spinning which will raise BDT 400 million under the fixed price method.

The Bangladesh Securities and Exchange Commission (BSEC) has also given its consent to ACME Laboratories to sell 50 million ordinary shares to eligible institutional investors (EII) under the book building method.

The approvals came at a commission meeting held at the office of the securities regulator.

As per regulatory approval, the Dragon Sweater and Spinning will offload 40 million shares at an offer price of BDT 10 each.

The company will raise a capital worth BDT 400 million to purchase machineries along bearing the cost of constructions.

The company’s earning per share (EPS) calculated as per weighted average of last years is of BDT 1.33, whereas the net asset value (NAV) is of BDT 18.79 per share.

ACME Laboratories will conduct bidding to sell 50 million ordinary shares to the EIIs.

The procedure approving the prospectus will be started after fixing the issue price through the bidding.

As per the financial statement for the year ended on June 30, 2014, the ACME Laboratories’ EPS and NAV are BDT 5.65 and BDT 66.16 respectively.

At Monday’s meeting, the securities regulator has also approved the prospectus of Peninsula AMCL BDBL Unit Fund One.

The initial size of the fund will be BDT 100 million.

Of BDT 100 million, BDT 20 million will contribute by sponsors, whereas the remaining BDT 80 million will be collected from the public.