The securities regulator has approved the initial public offering (IPO) proposal of BD Thai Food and Beverage Ltd to raise Tk 150 million from the capital market.
The Bangladesh Securities and Exchange Commission (BSEC) endorsed the company's IPO proposal at a commission meeting on Sunday - presided over by BSEC Chairman Prof. Shibli Rubayat-Ul-Islam, according to a press release.
As per the BSEC approval, BD Thai Food will offload 15 million ordinary shares at an offer price of Tk 10 each - under the fixed price method.
The company will utilise the IPO proceeds for purchasing machinery and equipment, land development, building construction, and bearing the IPO expenses.
According to the financial statement for the year ending on June 30, 2020, the company's net asset value (NAV) per share (NAV without revaluation) was Tk 12.82 and (NAV with revaluation) Tk 14.23, and the weighted average earnings per share (EPS) for the last five years stood at Tk 0.63.
The company's paid-up capital is Tk 665 million. Lock-in will be applicable for all existing shareholders for three years from the first share trading date in the exchanges.
Besides, the company's sponsor-directors will not be entitled to get dividend until its EPS reaches Tk 1.0 or above, as per the BSEC approval.
The BSEC also decided to allow BD Thai Food to disburse 15 per cent IPO shares to its employees with a lock-in period of two years.
The company will not be able to declare, approve and distribute dividends before its listing on the bourses, according to the BSEC condition.
BLI Capital and Unicap Investment will jointly act as the issue manager for the IPO process.
Incorporated in 2010, BD Thai Food and Beverage Limited (BTFBL) is a concern of BD Thai Group. The company is engaged in producing beverage, confectionary and spice items.
In Sunday's meeting, the BSEC also allowed Union Bank Ltd to distribute 15 per cent IPO shares to its employees with a lock-in period of two years.
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