BSEC to bring change in book building method rules

The securities regulator has allowed Esquire Knit Composite to determine cut-off price through electronic bidding as part of going public under book building method.
The regulatory approval came at a meeting held Tuesday at the office of the Bangladesh Securities and Exchange Commission (BSEC).
Esquire Knit Composite will raise Tk 1.5 billion under book building method.
The company's IPO fund will be utilised for purchasing machinery, building and civil construction along with bearing the IPO expenses.
As per the financial statement for the year ended on June 30, 2017 the company's net asset value (NAV) per share stood at Tk 45.83 (with revaluation reserve) and Tk 25.96 (without revaluation reserve). The company's weighted average of earnings per share (EPS) is Tk 2.52.
Esquire Knit Composite is a composite circular knit garment manufacturer. The company is offering knitting, dyeing, yarn dyeing, cutting, sewing, laundry, embroidery, print, sequin and stone attachment, garment finishing and packing.
At Tuesday's meeting, the securities regulator took another decision to bring change in rules regarding conduct of eligible investors (EIs) while taking part in price bidding process of book building method.
"At the meeting, the regulator conducted a long discussion on bidding process of book building method. The amendment regarding conduct of EIs will be published soon," the securities regulator said.
The securities regulator also approved Tk 4.0 billion non-convertible subordinate bond to be issued by NCC Bank.
The tenure of the bond will be seven years and banks, local financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds and high net worth individuals will be allowed to purchase the bond through private placement.
NCC Bank will raise capital issuing bond to fulfill the condition of Tier-II capital base.
The securities regulator has imposed a penalty worth Tk 0.5 million on Syed Moazzem Hosen, a director of Pubali Bank, as he breached the securities rules by purchasing shares without any prior declaration.
According to the securities regulator, Mr. Moazzem also breached insider trading rules as he purchased shares based on information of recommending 10 per cent stock dividend for the year ended on December 31, 2013.
The securities regulator would issue warning letter to Pubali Bank for providing false information regarding share purchase by Mr. Moazzem.

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