RAK Ceramics would be 1st co under Book Building method
Tuesday, 17 November 2009
FE Report
RAK Ceramics (Bangladesh) Limited will make debut on the stock market as early as possible through Book Building method. But the indication price of its shares is yet to be fixed, the source said.
According to the rules of Book Building method, the company will fix the indication price of its shares through Road Show and seminars on the basis of its qualitative and quantitative items. And the price must be consistent with fundamentals.
One of the SEC members said that the indication price of the RAK Ceramics will be fixed through fixed price rule, which is noted in the Gazette as 16(b). But 16(b) is not applicable in case of Book Building method, the source said.
The greater part of the SEC body including the chairman expressed the opinion to fix the indication price of the RAK Ceramics' shares as per the existing rule of the Book Building method.
Even IDLC Finance, the issuer and Equity partner of the RAK Ceramics is ready to fulfill the SEC's asking requirements, the source added.
The source also said, the proceedings of the RAK Ceramics' approval is going ahead in spite of one member opposes in case of fixing the indication price. According to one high official of the SEC, they cannot go beyond the existing rules at any cost.
RAK Ceramics will issue 30 million shares and each share will have a face value of Tk 10 and premium Tk 30. The indication price of its shares is of Tk 40 (proposed) and the company's paid up capital is Tk 1.86 billion.
RAK Ceramics (Bangladesh) Limited will make debut on the stock market as early as possible through Book Building method. But the indication price of its shares is yet to be fixed, the source said.
According to the rules of Book Building method, the company will fix the indication price of its shares through Road Show and seminars on the basis of its qualitative and quantitative items. And the price must be consistent with fundamentals.
One of the SEC members said that the indication price of the RAK Ceramics will be fixed through fixed price rule, which is noted in the Gazette as 16(b). But 16(b) is not applicable in case of Book Building method, the source said.
The greater part of the SEC body including the chairman expressed the opinion to fix the indication price of the RAK Ceramics' shares as per the existing rule of the Book Building method.
Even IDLC Finance, the issuer and Equity partner of the RAK Ceramics is ready to fulfill the SEC's asking requirements, the source added.
The source also said, the proceedings of the RAK Ceramics' approval is going ahead in spite of one member opposes in case of fixing the indication price. According to one high official of the SEC, they cannot go beyond the existing rules at any cost.
RAK Ceramics will issue 30 million shares and each share will have a face value of Tk 10 and premium Tk 30. The indication price of its shares is of Tk 40 (proposed) and the company's paid up capital is Tk 1.86 billion.