SEC okays Khulna Power Company's direct listing

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FE Report
The securities regulator has approved the direct listing of Khulna Power Company Limited (KPCL).
At a meeting it also decided to forfeit an amount of 10 per cent from the refund-warrants for duplicate applications in the Initial Public Offering (IPO) of the mutual funds, an official said Sunday.
The KPCL got the SEC (Securities and Exchange Commission) nod to print its prospectus after the approval of direct listing from Dhaka Stock Exchange (DSE). Its bidding date is expected to be fixed soon.
The SEC has become strict on forfeiting certain amounts from the refund-warrants because of a regular problem in distributing them (refund-warrants) due to duplicate applications submitted by the investors in IPO of mutual funds.
A member of the SEC has said, "the directive to forfeit an amount of 10 per cent is applicable to all of those who have already submitted duplicate applications in the IPO of the mutual funds and will further do the same."
"The SEC can forfeit hundred per cent of the refund-warrants for duplication errors, but this time it has decided to forfeit only 10 per cent. In the future the amount of forfeiting will increase," he said.
The indicative price for KPCL shares has been fixed at Tk 162 through bidding by seven institutions from five sectors.
In the price-discovery phase, bidders can quote 20 per cent more or less than the indicative price, meaning they will have to bid between Tk 129.60 and Tk 194.40 for each share.
In total, KPCL will offload 5,21,48,250 ordinary shares of Tk 10 each --- of which the eligible institutions will bid for 1,04,29,650 shares, while the rest have been kept for general investors.
The institutions will not be allowed to sell shares in the first 15 trading days under the lock-in system.
The paid-up capital of KPCL is Tk 208.59 crore, now owned by Summit Industrial & Mercantile Corporation (Pvt) Ltd and United Enterprise & Co Ltd (Bangladesh) with equal 50 per cent stakes.
AAA Consultants and Financial Advisers is the issue manager.