Dhaka, Bangladesh (BBN)-The securities regulator has allowed Simtex Industries to begin public subscription after getting “satisfactory explanation” regarding financial disclosure from the company, the officials said.
As per fresh schedule, the public subscription of Simtex Industries will begin from September 6 and will end on September 14.
The decision was taken at a commission meeting held on Wednesday at the BSEC office in Dhaka.
The Bangladesh Securities and Exchange Commission (BSEC) suspended the initial public offering (IPO) subscription of Simtex Industries on August 23, a-day before the subscription was scheduled to be started, as some financial disclosures made in balance sheet were not clear to the regulator.
“The securities regulator has allowed the company to start public subscription as its explanation regarding financial disclosures were proved satisfactory,” a BSEC official told the BBN.
When asked, the BSEC official said, the presentation of cash flow mistakenly was mentioned in another place of the balance sheet.
“The company’s explanation was satisfactory as there was no net change following correction made in the balance sheet,” he said.
The subscription of Simtex Industries was scheduled to begin on August 24 last to raise a fund worth BDT 600 million from the public.
As per the securities regulator’s approval, Simtex Industries will offload 30 million ordinary shares at an offer price of BDT 20, including a premium of BDT 10 for each ten taka share.
According to the BSEC, the company will use the funds from the initial public offerings for capital investments, repayment of bank loans, business expansion and to bear the cost of IPO proceedings.
As per the audited financial statement for the year ended on June 30, 2014, the company’s earning per share (EPS) is BDT 3.33, whereas the net asset value (NAV) per share is BDT 19.60.
AFC Capital Ltd and Imperial Capital Ltd have been appointed as issue managers of Simtex Industries’ IPO.