Dhaka, Bangladesh (BBN) – The Securities and Exchange Commission (SEC) will sit with the stakeholders of the stock market on Monday to discuss the revised guideline on book building method, officials said.
The SEC recently sent a copy of revised guideline to the ministry of finance. But the ministry told the regulator to re-send the guideline after discussing the issue with market stakeholders.
However, the regulator will publish a gazette notification after getting consent from the ministry of finance on the revised guideline.
In the guideline, the SEC stressed on fixing the highest and lowest limit of indicative price of a company to go public under the method.
The SEC formulated the revised guideline on book building method by fixing the maximum allowable price-earning (P/E) ratio at 15 recently, which will be the average P/E of three years, for a company willing to go public.
Under the guideline, an intending company to go public under book building method must fix its indicative price by taking into account it’s earning per share (EPS) and net asset value (NAV). In that case, before the debut trading a company’s P/E ratio cannot exceed 15. At the same time, the indicative price must remain below five times of NAV of per share.
BBN/SSR/AD-21Mar11-9:11 am (BST)
