NCT will sell 49pc shares to public

FE Team | Published: July 10, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The New Mooring Container Terminal (NCT), country's largest and one of the leading terminals in South Asia will go public through offloading its 49 per cent shares worth around Tk 4.0 billion.
The decision was finalised Monday at a meeting held at Chittagong Port. The NCT will go into operation in December this year.
"The Chittagong Port Authority (CPA) has taken the move to ensure its accountability and transparency to the public and also to help develop the country's capital market," said Muhammed Amirul Haque, director of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
The shares will be offloaded either under the direct listing regulation or through the initial public offering (IPO) process.
Sources concerned said the world's leading port operating companies remain listed on the capital markets of the respective countries to ensure their accountability and investors prefer shares of such companies.
Shares of PSA (Port of Singapore Authority) and other ports in India, Malaysia are very lucrative to the investors because of their strong corporate base.
Amirul Haque, who represents the FBCCI at Chittagong Port said this is the first ever move by the port authority to enlist NCT with the capital market adding: "it will create a great enthusiasm among the small investors".
Besides, the CPA also decided to incorporate the country's banking and non-banking institutions with the NCT operation.
Financial institutions will be able to become lead investors by purchasing 51 per cent shares of the NCT.
An operator, having three years experiences in handling container terminals in two countries, will have 30 per cent shares in the NCT management.
The CPA took move for constructing the NCT which has five jetties each 200 metres in length with adequate back up facilities.
At least five container vessels will be able to take berth at the terminal. The vessels might be able to discharge at least 5000 containers and to load the same number of export containers each day.
The NCT's back-up facilities will have the capacity to accommodate at least 0.5 million containers yearly.
Currently, the country handles around 1.0 million export-import containers.