BSEC approves IPO of Sea Pearl Beach Resort

The securities regulator has approved the IPO (initial public offering) proposal of Sea Pearl Beach Resort and Spa Limited which will raise a capital worth Tk 150 million.
The approval came Tuesday at a meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC) on Tuesday evening.
At Tuesday's meeting, the securities regulator also asked its enforcement department to take action against Shyamol Equity Management, a stock broker of the Dhaka Stock Exchange (DSE), for removing a substantial amount of fund from the consolidated customers' account.
The enforcement action will be taken as per the section 12 of the Securities and Exchange Commission (Stock Dealer, Stock Broker and Autorised Dealer) Rules, 2000. This section has the provision of canceling or postponing the license of a stock broker.
As per the BSEC approval, Sea Pearl Beach Resort and Spa Limited will offload 15 million shares at an offer price of Tk 10 each under the fixed price method.
The company reported its net asset value (NAV) of Tk 10.48 per share. The weighted average of earnings per share (EPS) of last three years was Tk 0.41.
The company will raise a capital worth Tk 150 million to purchase land and furniture, and bear the IPO expense, among others.
Banco Finance & Investment and Prime bank Investment are working as issue managers of the Sea Pearl Beach Resort and Spa Limited.
At Tuesday's meeting, the securities regulator has accorded consent to Exim Bank for issuing Tk 6.0 billion Mudaraba Subordinated Bond.
The tenure of the bond will be seven years, while the characteristics will be non-convertible, fully redeemable, unsecured and unlisted.
The purpose of issuance of the Bond is to raise the Tier-II Capital of the Company and its issue price will be 100 per cent at par.
On Tuesday, the securities regulator asked its enforcement department to take action against Shyamol Equity Management for not fulfilling the deficit found in consolidated customers' account.
The enforcement department will take action as per the section 12 of the Securities and Exchange Commission (Stock Dealer, Stock Broker and Autorised Dealer) Rules, 2000. As per this section, the license of Shyamol Equity Management can be cancelled or suspended.
According to the BSEC finding, there was a shortfall of Tk 226.44 million in the consolidated customer account maintained by Shyamol Equity Management.
The BSEC asked the Shyamol Equity Management to fulfill the shortfall within July 31, 2018.
Following a plea of the Shyamol Equity Management, the BSEC later extended the timeframe till October 31, 2018 to fulfill the shortfall.
The timeframe was extended by setting a condition of postponing the Shyamol Equity's dividend from the DSE, the receivable fund the exchange's strategic partner and the free limit in conducting share transactions.
Nevertheless, Shyamol Equity Management did not comply with the regulatory instruction and following a BSEC instruction the company submitted a reported to the BSEC on February 10, 2019.
As per the report, the shortfall stood at above Tk 95.69 million in the consolidated customers' account.
"The behaviour of the Shyamol Equity Management was risky and contrary to the interest of the investors," said the securities regulator.

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