GP IPO begins after Ramadan

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FE Report
Grameenphone (GP) is expected to begin its subscription under IPO from the fourth week of September as it received final clearance from the securities regulator Thursday.
The Securities and Exchange Commission (SEC) has also approved initial public offerings (IPOs) applications of two insurance companies, trust deeds of six financial institutions and rights share offer of Metro Spinning Ltd.
The total size of the GP issue will be Tk 9.73 billion, of which Tk 4.86 billion (69.40 million shares) would be sold to general investors and Tk 4.85 billion (65.70 million shares) for institutions.
The face value has been fixed at Tk 10 a share with premium Tk 60 for public and Tk 64 for institutions. Market lot has been fixed at 200 shares, meaning that investors will have to deposit Tk 14,000 for each application.
"GP is likely to begin its subscription for public after Ramadan," Anwarul Kabir Bhuiyan, executive director of the SEC told reporters after the 'commission meeting' held Thursday.
After scrutinising its audited reports ended December 2008 and projection reports of three years, the commission gave final approval to float the biggest issue in the stock market, he added.
On May 2 last, the SEC had, in principle, approved the IPO application of GP tagging conditions that the GP will have to submit its three-year projection growth and audited financial accounts ended December 2008 by July last.
Earlier, the GP, in its IPO application, submitted its audited financial accounts of nine months from January to September 2008 based on which the commission provisionally approved its IPO application.
In December, the GP has already raised money from the private placement offering (PPO), oversubscribed by three times, which has been allocated at the price of Tk 74.0 per share.
The commission also gave nod to the IPO applications of the Probhati Insurance and Dhaka Insurance. The two companies will issue IPO of Tk 900 million each and their face value would be Tk 100 each share.
It also allowed to issue right shares proposals of 20,700,000 ordinary shares of Tk 10 each at an issue price of Tk 15 each (including a premium of Tk 5.0 each) totaling Tk 310.50 million at 1:3R (three right shares for every one existing share).
The six mutual funds -- IFIC Bank, Trust Bank, Prime Bank, Phoenix Finance and Delta BRAC Housing and ICB 3rd NRB -- received trust deeds approval from the SEC.
The size of the mutual funds of IFIC, Prime Bank, Delta BRAC Housing and ICB 3rd NRB is Tk 1.0 billion each, Trust Bank Tk 2.0 billion and Phoenix Finance Tk 500 million.