Bangladesh Securities and Exchange Commission on Tuesday approved an initial public offering proposal of Aman Cotton Fibrous Limited to raise Tk 80 crore by issuing shares at a price of Tk 36-Tk 40.
The commission gave the approval at a meeting presided over by its chairman M Khairul Hossain on Tuesday.
The commission on September 11 last year allowed Aman Cotton to conduct bidding among eligible institutional investors under the book building method of new public issue rules.
As per the bidding of eligible investors, the cut-off price of the company’s
shares stood at Tk 40 which will be allotted to general investors while the price for NRB investors has been set at Tk 36 as per the regulations.
Aman Cotton will use the IPO proceeds for buying machinery and equipments, paying bank loan, and to meet the IPO expenses.
As per the entity’s audited financial statements for the year ended on June 30, 2016, the company’s net asset value per share and weighted average earnings per share were Tk 32.31 and Tk 3.49 respectively.
ICB Capital Management is the issue manager of the company’s IPO.
The commission at the meeting also approved the prospectus of close-end SEML FBLSL Growth Fund allowing it to raise Tk 100 crore.
The face value of each unit of the fund will be Tk 10 and the fund will be closed by 10 years.
The sponsor of the fund, FBL Securities Limited has already provided Tk 10 crore and it raised Tk 35 crore through pre-IPO placement, and the rest Tk 55 crore will be collected through IPO.
Strategic Equity Management Limited is acting as asset management while Bangladesh General Insurance Company Limited as trustee and BRAC Bank as a custodian of the fund.
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