Dhaka, Bangladesh (BBN) - The Securities and Exchange Commission (SEC) has given approval an oil marketing firm, partly owned by the government, to launch what could become the country's second biggest IPO or Initial Public Offering.
Officials said the commission has allowed Mobil Jamuna Bangladesh Limited (MJBL) to raise BDT 5.08 billion by offloading 40 million shares under the book building method. The company's indicative price is BDT 127.0.
Global energy group ExxonMobil and state-owned Jamuna Oil Company Ltd, and EC Securities Limited, an investment arm of East Coast Group, have stakes in the 12-year-old MJBL. The company was previously known as Mobil Jamuna Lubricants Ltd.
The approval came at a meeting, chaired by the SEC chairman Ziaul Haque Khondker, which also okayed the rights offers by private lender Exim Bank Limited and internet service provider Agni Systems Ltd.
The MJBL said it would offload 40 million ordinary shares of BDT 10.0 under the book building method.
The company has decided to allow institutional investors to buy eight million shares in a bidding that will fix the final price of shares.
However, the general public will be able to buy 24 million shares. The mutual funds and non-resident Bangladeshis (NRB) will be offered to snap up 4.0 million shares each.
Exim Bank will offer one rights shares against two existing shares at an offer price of BDT 10.0 without any premium.
Agni Systems Ltd. will offer one rights shares against two existing shares at an offer price of BDT 20.0, including a premium of BDT 10.0.
BBN/SSR/AD-04Oct10-10:13 am (BST)