DBH gets nod to float shares
Wednesday, 2 January 2008
FE Report
The country's biggest private sector housing finance company, Delta BRAC Housing Finance Corporation (DBH), has got approval Tuesday to raise Tk 105 million from the stock market, the securities regulator said.
The Securities and Exchange Commission gave the nod after the company sought permission to float 0.5 million shares having an offer value of Tk210 per share with face value Tk 100 and premium Tk 110.
"The commission approved DBH's application to float IPO," Farhad Ahmed, executive director of SEC, told reporters after a meeting headed by the chairman of the commission.
DBH, also the country's leading non-banking financial institution (NBFI), provides loans for construction of houses, purchase of flats or houses, extension and improvement of existing houses and purchase of housing plots.
It was incorporated in May 1996.
The pre-IPO paid up capital of the company is Tk 220 million and the authorised capital Tk 500 million, the company said in a draft prospectus for IPO. The earning per share (EPS) of the company was Tk 45 in the year ending in June 2006 and Tk 56 to June 2007.
The company posted a net profit of 107.4 million in the financial year ending June 30, 2007, and 134.2 million in the previous year. The net asset value (NAV) per share is Tk 214 as of June 30, 2007.
The Credit Rating Agency of Bangladesh (CRAB) ranked the company AAA for long term and ST1 for short term.
The SEC also gave permission to the IFIC to offload government-owned 119857 shares to boost the number of quality shares in the stock market, Ahmed said.
The move was taken despite an existing SEC order which bars the sponsors, directors or other officials of the bank to sell or buy or transfer shares of the company till the acceptance of the annual report by the board of directors, he said.
"The SEC exempted this rules for two years only to allow the bank to offload the government-owned shares. We have taken the move to increase quality shares in the bourse," he added.
The meeting also okayed the Investment Corporation of Bangladesh (ICB) subsidiary company Capital Management Limited to raise its paid up capital to Tk 200 million from existing Tk 80 million.
The country's biggest private sector housing finance company, Delta BRAC Housing Finance Corporation (DBH), has got approval Tuesday to raise Tk 105 million from the stock market, the securities regulator said.
The Securities and Exchange Commission gave the nod after the company sought permission to float 0.5 million shares having an offer value of Tk210 per share with face value Tk 100 and premium Tk 110.
"The commission approved DBH's application to float IPO," Farhad Ahmed, executive director of SEC, told reporters after a meeting headed by the chairman of the commission.
DBH, also the country's leading non-banking financial institution (NBFI), provides loans for construction of houses, purchase of flats or houses, extension and improvement of existing houses and purchase of housing plots.
It was incorporated in May 1996.
The pre-IPO paid up capital of the company is Tk 220 million and the authorised capital Tk 500 million, the company said in a draft prospectus for IPO. The earning per share (EPS) of the company was Tk 45 in the year ending in June 2006 and Tk 56 to June 2007.
The company posted a net profit of 107.4 million in the financial year ending June 30, 2007, and 134.2 million in the previous year. The net asset value (NAV) per share is Tk 214 as of June 30, 2007.
The Credit Rating Agency of Bangladesh (CRAB) ranked the company AAA for long term and ST1 for short term.
The SEC also gave permission to the IFIC to offload government-owned 119857 shares to boost the number of quality shares in the stock market, Ahmed said.
The move was taken despite an existing SEC order which bars the sponsors, directors or other officials of the bank to sell or buy or transfer shares of the company till the acceptance of the annual report by the board of directors, he said.
"The SEC exempted this rules for two years only to allow the bank to offload the government-owned shares. We have taken the move to increase quality shares in the bourse," he added.
The meeting also okayed the Investment Corporation of Bangladesh (ICB) subsidiary company Capital Management Limited to raise its paid up capital to Tk 200 million from existing Tk 80 million.