Dhaka, Bangladesh (BBN): The securities regulator has approved the IPO (initial public offering) proposal of Central Pharmaceuticals to raise Tk 140 million from public, officials said.

The approval came Wednesday at a commission meeting chaired by the Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor M Khairul Hossain, said a statement signed by Md. Saifur Rahman, executive director of the BSEC.

As per approval given by the BSEC, the company will float 14 million ordinary shares of Tk 10 each to collect Tk 140 million from public. There will be no premium in the offering price of the company’s shares.

According to the prospectus, IPO proceeds will be utilized to pay off bank loans and to meet IPO expenses.

As per the financial statement as of June 30, 2012, the company’s earning per share (EPS) is Tk 1.21 and net asset value (NAV) is Tk 11.28.
Janata Capital and Investment Limited is the the issue manager for Central Pharmaceutical’s IPO.

At Wednesday’s meeting, the securities regulator also approved rights offer proposal of National Housing Finance and Investments Limited (NHFIL).

The company will offer 3,43,20,000 ordinary shares of Tk 10 each to raise Tk 343.2 million at a ratio of 1:2. (One rights share for two existing shares).
The objective behind issuance of Rights Shares is to strengthen the capital base of the Company to comply with capital adequacy requirement as per Bangladesh Bank.

The proceeds received from rights shares will be invested to increase the leading portfolio as well as to pay off high cost borrowings. The record date for entitlement of rights share will be notified later.

The securities regulator also gave its consent to provide Asset Management license to ‘Vanguard Asset Management Limited’, responding their appeal for license. The commission also decided to issue Letter of Intent initially.

BBN/BB/AD/28Mar-13-11.30am (BST).