Dhaka, Bangladesh (BBN) – The Bangladesh Securities and Exchange Commission (BSEC) has approved the initial public offering (IPO) of Far East Knitting and Dyeing Industries to raise fund worth BDT 675 million floating its 250 million shares.
Under the approval, the offer price of each share of the company has been set at BDT 27 including premium of BDT 17 on each share, according to a BSEC statement.
The capital market regulator approved the IPO in a regular commission meeting held at its office in Dhaka on Tuesday with its chairman M Khairul Hossain in the chair.
Far East Knitting will use the IPO fund for the organisation’s balancing, modernisation, rehabilitation, expansion, repayment of the term loan and meeting up the IPO expenses.
As per the company’s last five-year weighted average of financial statements, the earning per share stands at BDT 3.28 and the re-valued net asset value per share at BDT 19.08.
The BSEC on the day also approved a seven-year ‘Coupon-Bearing Subordinate Bond’ of Mercantile Bank worth BDT 3.00 billion.
The bank will use the fund to meet up its Tier-II requirement and increase capital adequacy ratio as per the BASEL-II, the BSEC said.
Individuals except the existing shareholders of the bank, non-bank financial institutions, corporate entities, insurance companies, asset management companies, mutual funds, merchant banks and individuals with high net worth will be illegible to avail the bond.
The face value of each lot of the bond has been set at BDT 1.0 million and coupon rate of the bond will be between 12 percent and 15 percent.
BBN/SSR/AD-26Mar14-1:37 pm (BST)
