Pre-IPO placement provision to go
Wednesday, 13 January 2010
FE Report
The government is taking steps to do away with private placement as underwriters are obliged to buy unsold shares, said finance minister AMA Muhith in parliament (JS) on Tuesday.
The minister was responding to a question of parliament member HM Golam Reza.
There will be standardised face value for the future companies, which want to float shares on the market, he said.
The minister informed the House that errant companies are placed under the Z cate-gory for not holding annual general meetings or not paying dividends.
"Shares of state-owned companies will be offloaded through direct listing and bond market will be made effective," he said.
The minister in reply to another question said the government received $1.04 billion foreign loans and $133.37 million grant in July-November period of the current fiscal, while the total foreign aid commitment figure is $1.5 billion in the fiscal.
The per capita foreign loan was $149.54 in 2007-08 period, Mr Muhith said.
The government earned Tk 301 billion revenue in the first five months of the current fiscal, while it spent Tk 69 billion under the annual development programme in the same period, he said.
"We are hopeful of achieving Tk 290 billion ADP in the current fiscal," he added.
Mr Muhith said the government bears the total revenue budget, but 52 per cent of ADP budget comes from foreign sources.
"It is our legitimate right to have foreign aid," he added.
The government is taking steps to do away with private placement as underwriters are obliged to buy unsold shares, said finance minister AMA Muhith in parliament (JS) on Tuesday.
The minister was responding to a question of parliament member HM Golam Reza.
There will be standardised face value for the future companies, which want to float shares on the market, he said.
The minister informed the House that errant companies are placed under the Z cate-gory for not holding annual general meetings or not paying dividends.
"Shares of state-owned companies will be offloaded through direct listing and bond market will be made effective," he said.
The minister in reply to another question said the government received $1.04 billion foreign loans and $133.37 million grant in July-November period of the current fiscal, while the total foreign aid commitment figure is $1.5 billion in the fiscal.
The per capita foreign loan was $149.54 in 2007-08 period, Mr Muhith said.
The government earned Tk 301 billion revenue in the first five months of the current fiscal, while it spent Tk 69 billion under the annual development programme in the same period, he said.
"We are hopeful of achieving Tk 290 billion ADP in the current fiscal," he added.
Mr Muhith said the government bears the total revenue budget, but 52 per cent of ADP budget comes from foreign sources.
"It is our legitimate right to have foreign aid," he added.