Revised rights issue rule approved, GSP Finance to go public

FE ReportThe securities regulator has approved the revised rights issue rule, incorporating some provisions, including the mandatory condition of having profits in preceding three years for issuing rights with premium, officials said. The Securities and Exchange Commission (SEC) has also approved the IPO (initial public offering) of GSP Finance Company and the trust deed of Tk 10 billion UCB Infrastructure Fund. The approvals came Tuesday at a commission meeting, chaired by the SEC Chairman Professor M Khairul Hossain. As per the regulatory approval, a company must have profits in preceding three years if intends to issue rights with premium. The due diligence reports by company directors will also have to be submitted to the SEC. The other mandatory provisions in issuing rights includes the publication of company's right offer documents on the website of company and the SEC as well. According to SEC's approval, the GSP Finance Company will offload 20 million ordinary shares of Tk 25 each, including a premium of Tk 15 for ten taka shares. The company's net asset value (NAV) and earning per share (EPS) are Tk 25.61 and Tk 1.75 respectively as of December, 2010. ICB Capital Management is working as the issue manager of GSP Finance. The SEC also approved the trust deed of UCB Infrastructure Fund, which will go public with a size of Tk 10 billion. Among the total size of the fund, Tk 3.50 billion will be collected through private placement, Tk 3.45 billion from non-resident Bangladeshis, Tk 550 million from mutual funds and Tk 1.50 billion from general investors. Alif Asset Management Company has been appointed the fund manager of this closed-end mutual fund.