Bangladesh Securities and Exchange Commission on Tuesday allowed Esquire Knit Composite Limited to discover issue price of its shares under the book building method for raising Tk 150 crore from the capital market through an initial public offering.
The commission gave the approval at a meeting presided over by its chairman M Khairul Hossain on Tuesday.
Esquire will use the IPO proceed for buying machinery, constructing building and civil construction, and to meet the IPO expenses.
With the participation of institutional investors, the selling price of the company’s share would be fixed through the bidding process.
The commission also decided to amend some of the provisions regarding the participation of eligible investors in the price discovery process of a company that will publish soon.
Earlier, the commission hinted that the EI will have to provide reasons behind their price quote in bidding of a company as the regulator noticed irrational pricing.
The commission also planned to find out unit value of a company.
As per the entity’s audited financial statements for the year ended on June 30, 2017, the company’s net asset value per share and weighted average earnings per share were Tk 25.96 and Tk 2.52 respectively.
Prime Finance Capital Management Limited is the issue manager of the company’s IPO.
The regulatory body at the meeting also allowed NCC Bank to float non-convertible subordinated bond worth Tk 400 crore.
The face value of each unit of the bond will be Tk 1 crore and the bond will be fully redeemable in seven years.
The bank will fulfil the condition of Tier II capital base after raising the fund from the market.
Only corporate bodies, financial institutions and funds will be allowed to subscribe the bonds through the private placement.
EBL Investment will work as the trustee for the bond.
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