BSEC okays AFC Health’s Tk 17cr IPO

Staff Correspondent | Published at 10:26pm on September 16, 2020

The Bangladesh Securities and Exchange Commission on Wednesday approved the AFC Health Limited’s proposal to raise Tk 17 crore from the capital market through an initial public offering.

The company will float 1.7 crore shares at an issue price of Tk 10 each.

A BSEC meeting, presided over by its chairman Shibli Rubayat Ul Islam, approved the IPO proposal, said a BSEC press release.

The company will use the IPO proceeds to purchase machinery and equipment and to meet IPO expenses.

As per the entity’s audited financial statements for the year ended on June 30, 2019, AFC Health’s net asset value per share (without revaluation) and weighted average earnings per share were Tk 13.13 and Tk 1.47 respectively.

Imperial Capital Limited and CAPM Advisory Limited are the issue manager of the company’s IPO.

The eligible investors including institutional investors who intend to subscribe the IPO shares must have Tk 1 crore in investment in the capital market on the fifth day before the subscription starts.

The BSEC at the meeting fined NRB Equity Management Limited Tk 10 lakh for violation of securities rules.

The BSEC found that the merchant banker opened a number of accounts without any verification of provided documents.

‘It was proved that a number of corrupted officials of the company was involved in the opening of accounts illegally, which were closed by the company,’ the BSEC press release said.