Dhaka, Bangladesh (BBN)– The securities regulator has approved the initial public offering (IPO) proposal of the Khan Brothers PP Woven Bag Industries (KBPWBI), which will raise a fund worth BDT 200 million under the fixed price method, officials said.
The approval came on Tuesday at a commission meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
At Tuesday’s meeting the regulator has also approved the proposal of issuing BDT 2.0 billion Subordinate Bond by the Trust Bank.
As per the regulatory approval, the KBPWBI will utilise BDT 200 million for the purpose of machinery purchase, building construction, repayment of term loan, strengthening current capital and IPO proceedings.
Considering the weighted average of last five years and the audited financial statement ended on June 30, 2013, the company’s earning per share (EPS) and net asset value are of BDT 0.87 and BDT 14.69 respectively.
AFC Capital has been appointed the issue manager to the KBPWBI.
The securities regulator has given its consent to the Trust Bank to issue Subordinate Bond worth BDT 2.0 billion to maintain the flow of capital growth and fulfill the requirement of Basel-II and Tier-2 capital.
According to the BSEC approval, only the institutional investors will be eligible to purchase the Subordinate Bond through private placement.
The face value of each unit of the Subordinate Bond of Trust Bank is of BDT 10 million.
BBN/SSR/AD-24June14-11:55 pm (BST)