Rights offer of SIBL, Sonargaon Textile okayed
FE Report | Wednesday, 2 March 2011
FE Report
The securities regulator has given its consent to Social Islami Bank Limited (SIBL) and Sonargaon Textiles for issuing rights shares at the ratio of 1:1, officials said. The Securities and Exchange Commission (SEC) has also included a provision to the laws of merchant banks regarding regulator's permission before appointing the bank's managing director or chief executive officer (CEO). The approvals of two rights offers and the condition of appointing merchant bank's chief came at a commission meeting held Tuesday at the office of the SEC. The SEC spokesman Mohammad Saifur Rahman said from now on the merchant banks will have to take regulators' consent before appointing their managing director or CEO, whoever will be the chief of the bank. As per SEC nod, Sonargoan Textiles will issue one rights share against one existing share at an offer price of Tk 150 per share, with a premium of Tk 50. The company will issue more than 1.091 million rights shares worth more than Tk 163.68 million. On the other hand SIBL will also issue one right share against one existing share at an issue price of Tk 10, without any premium. As per regulatory approval, the company will issue more than 298.7 million rights shares worth above Tk 2.98 billion. At Tuesday's meeting, the IPO (initial public offering) proposals of two companies---Rangpur Dairy and Apollo Hospitals (STS Holdings)--- were also discussed. But finally the meeting ended without any decision regarding the IPO proposals of these two companies.
The securities regulator has given its consent to Social Islami Bank Limited (SIBL) and Sonargaon Textiles for issuing rights shares at the ratio of 1:1, officials said. The Securities and Exchange Commission (SEC) has also included a provision to the laws of merchant banks regarding regulator's permission before appointing the bank's managing director or chief executive officer (CEO). The approvals of two rights offers and the condition of appointing merchant bank's chief came at a commission meeting held Tuesday at the office of the SEC. The SEC spokesman Mohammad Saifur Rahman said from now on the merchant banks will have to take regulators' consent before appointing their managing director or CEO, whoever will be the chief of the bank. As per SEC nod, Sonargoan Textiles will issue one rights share against one existing share at an offer price of Tk 150 per share, with a premium of Tk 50. The company will issue more than 1.091 million rights shares worth more than Tk 163.68 million. On the other hand SIBL will also issue one right share against one existing share at an issue price of Tk 10, without any premium. As per regulatory approval, the company will issue more than 298.7 million rights shares worth above Tk 2.98 billion. At Tuesday's meeting, the IPO (initial public offering) proposals of two companies---Rangpur Dairy and Apollo Hospitals (STS Holdings)--- were also discussed. But finally the meeting ended without any decision regarding the IPO proposals of these two companies.