Dhaka, Bangladesh (BBN)-The Bangladesh securities regulator on Tuesday approved the IPO (initial public offering) proposal of the Western Marine Shipyard Limited (WMSL) to raise a fund worth BDT 1,575 million from public.
The approval came at a commission meeting, chaired by the Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor Khairul Hossain, held at the BSEC office.
As per the regulatory approval, Western Marine Shipyard will float 45 million ordinary shares at an offer price of BDT 35, including a premium of BDT 25.
The company will use the IPO fund to re-pay the bank loan, infrastructure development and expenses of IPO proceedings.
The company’s earning per share (EPS) and net asset value (NAV) per share were BDT 3.87 (weighted average) and BDT 40.27 in accordance with the financial statement for the year ended on June 30, 2013.
Prime Finance Capital Management Ltd, ICB Capital Management Ltd, and EC Securities Ltd are acting as issue managers of the Western Marine Shipyard’s IPO.
The securities regulator also formed a two-member probe committee, comprising BSEC director Jahangir Alam and deputy director Abul Kalam Azad to investigate unusual price hike of Wata Chemicals Ltd on June 2.
The committee asked to submit its report within the next 10 working days.
Wata Chemicals’ share marked 714.54 percent rise on June 2.
Its share price was BDT 59.8 on June 1, which closed at BDT 487.1 on June 2.
The BSEC also formed another three-member committee to formulate rules and regulations regarding venture capital and private equity.
BSEC executive director Mahbubul Alam has been made the convener of the body, whereas, director Abul Kalam and deputy director Kawsar Ali have been appointed as member and member secretary respectively.
The committee asked to submit the report within one month.
The securities regulator also fined Jalabad Securities BDT 0.10 million, Akij Securities BDT 1.0 million, Grameen Capital Management BDT 0.20 million, Yeakin Polymer BDT 0.10 million for violating securities rules and regulations.
The BSEC also refused the proposal of LRGB Unit Fund managed by the LR Gobal Bangladesh Asset Management Company and asked to re-fund the LRGB Unit Fund’s subscription amount as it violates securities rules.
The securities regulator also warned the LR Gobal Bangladesh Asset Management Company.
BBN/BB/AD-03June14-8:55pm (BST)
