Bangladesh Securities and Exchange Commission on Monday approved a Tk 30-crore initial public offering of Silva Pharmaceuticals under the fixed price method.
The pharmaceuticals company will float 3 crore shares at an issue price of Tk 10 each.
The capital market regulator gave the approval at a commission meeting which was presided over by its chairman M Khairul Hossain, said a BSEC press release.
The pharmaceutical company will use its IPO proceeds in purchasing machinery, constructing building, repaying bank loan and meeting up IPO expenses.
As per the entity’s audited financial statement for the year ended on June 30, 2017, the company’s net asset value per share and weighted average earnings per share are Tk 16.48 and Tk 1.03 respectively.
Imperial Capital Limited, Prime Finance Capital Management Limited and SBL Capital Management Limited are the issue manager of the company’s IPO.
BSEC at the meeting also decided to annul the existing Over the Counter Rules, 2001 and approved a new draft rules in this regard. The drafted rules will the published in national dailies for public opinion.
The shares of the companies which were delisted from the main board of the DSE are traded at the OTC market of the bourse.
The main purpose of the making fresh rules is to restructure and automate the OTC market of the two stock exchanges.
The fresh OTC rules would lessen hindrances in smooth operation on the OTC platform.
Once the automation is completed, investors’ physical presence at the bourse’s OTC market will not be required as brokerage houses, which will fulfil the requirements of new rules, will be allowed to submit orders for share sales and purchase in favour of investors.
They said the automation of the OTC market would facilitate the shareholders of the companies listed with the market to negotiate prices of their shares.
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