BSEC approves Zaheen Spinning’s rights offer

BCB ICL Growth Fund also approved

March 08, 2018 00:00:00

FE Report

The securities regulator has approved a proposal of rights shares to be issued by Zaheen Spinning.

The company will issue one rights share against one existing share at an offer price of Tk 10 each.

The regulatory approval came Wednesday at a meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).

As per the BSEC approval, the company will issue above 98.55 million shares to raise a capital worth above Tk 985.52 million. The company will utilise the fund for expansion of business and capital along with partial repayment of loans.

The company reported net asset value (NAV) per share of Tk 14.07 and earnings per share (EPS) of Tk 1.39 for the year ended on June 30, 2017.

The securities regulator has also approved the proposal of Tk 5.0 billion non-convertible floating rate sub-ordinate bond to be issued by Southeast Bank. The tenure of the bond will be seven years. The bond will be issued to local financial institutions, insurance companies, corporate bodies and other eligible investors through private placement. The company will raise capital through bond issue to fulfill the requirement of Tier-II Capital Base.

At Wednesday's meeting, the securities regulator approved the draft prospectus of BCB ICL Growth Fund. The initial size of the fund will be Tk 250 million. The sponsors will contribute Tk 100 million, while remaining Tk 150 million will come through sales of units of the fund. The face value of the units is Tk 10 each.

Commerce Bank and Impress Capital, a fund manager, are the sponsors of BCB ICL Growth Fund. Investment Corporation of Bangladesh (ICB) is the trustee of the fund, while BRAC Bank is the custodian of the fund.

The securities regulator has also extended the timeframe by one year for completing formalities of signing agreement with strategic partner by the Chittagong Stock Exchange (CSE). The existing deadline will end today (March 8, 2018). The second bourse is looking for strategic partner as part of demutualisation process.

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