Dhaka, Bangladesh (BBN) - The Securities and Exchange Commission (SEC) has approved the IPO (initial public offering) proposal of Generation Next Fashions to offload 30 million ordinary shares at an offer price of BDT 10 each, officials said.
The securities regulator also approved two proposals of issuing Subordinated Floating Rates Bonds and Mudaraba Subordinated Bonds by United Commercial Bank (UCB) and First Security Islami Bank (FSIB) respectively.
The textile maker, whose earnings-per share was BDT 2.09 as of December 2011, will use the IPO proceeds for loan repayment and business expansion.
Generation Next, a composite knit manufacturer, was formed in 2006.
The company currently supplies products to top retailers in the US and Europe, such as Tesco, Primark, Asda, Carrefour, Wal-Mart, United Colors of Benetton, Matalan.
Currently, 26 textile companies are listed on the stock market.
BRAC-EPL Investment Ltd is the issue manager of Generation Next's IPO.
The UCB will issue Subordinated Floating Rates Bonds worth BDT 2.0 billion among local financial institutes, insurance companies and foreign corporate institutes to fulfill the requirement of Basel-II and Tier-2. The tenure of these bonds will be seven years.
For same purpose, FSIB will issue Mudaraba Subordinated Bonds worth BDT 2.5 billion and the tenure of the bonds will be six years.
BBN/SSR/AD-01Aug12-7:02 am (BST)
