SEC approves IPO of First Security Bank, rights offer of BRAC Bank
FE Report | Wednesday, 4 June 2008
The Securities and Exchange Commission (SEC) Tuesday gave approval to the First Security Bank (FSB) to raise Tk 1.15 billion through initial public offering (IPO).
The FSB will be the first private commercial bank to offer the largest number of primary shares to the general investors.
The bank which began its operation in 2000 will issue 11.5 million shares with the face value of Tk 100 per share. The Net Asset Value (NAV) of the bank is Tk 113.
The bank's credit rating for long term is triple B and for short term, ST-3.
The paid-up capital of the bank is Tk 1.15 billion and the authorised capital is Tk 3.60 billion. The bank has 20 branches across the country and six more branches will be opened soon.
AB Bank is the issue manager of the First Security Bank IPO.
As per securities rules, after getting approval the prospectus will have to be published within 25 days.
The SEC also gave nod to the BRAC Bank for issuing one rights share against every five shares at Tk 500 (including a premium of Tk 400) to raise its paid up capital.
"The commission okayed the proposed premium of the BRAC Bank on the ground that its average share price is more than Tk 1000 in the last six months, " Farhad Ahmed, executive director of the SEC said.
It also gave consent to start operation of an Asset Management Company (AMC) named LR Global Bangladesh AMC Limited.
The paid up capital of company, the fourth AMC in the country, is Tk 30 million. The local company Equity Partners Limited has the share of only Tk 100 of the company and the USA based LR Global Partners owns the majority share.
Founded in 1997, LR Global Partners is currently operating in top cities including New York and Hong Kong and manages fund of about Tk 27 billion.
Meanwhile, the DSE listing sub-committee recommended Tuesday listing of the Titas Gas Transmission and Distribution Company with the bourse.
The subscription for the 'Grameen One: Scheme Two', the second scheme of 'Grameen Mutual Fund One' is likely to begin from June 30.
The AIMS, working for the mutual fund as an asset manger, got consent letter on Tuesday from the Securities and Exchange Commission (SEC).
The SEC in a commission meeting Tuesday also allowed the Titas to float shares under direct listing.
"The listing subcommittee recommended Titas for direct listing. But some additional information is required for beginning the trade. As soon as we get the information, the board meeting will be called in an urgent basis for fixing debut trading," said DSE chief executive officer Salahuddin Ahmed Khan.
The state-run gas company will join the two bourses under direct listing rules with offloading of shares worth Tk 2.14 billion, which is 25 percent of its paid up capital of Tk 8.56 billion.
The face value of each Titas share is fixed at Tk 100. As of June 2007, earning per share (EPS) of Titas Gas was Tk 539. The current EPS stands at Tk 30.07 following the enhancement of the company's paid up capital to Tk 8.56 billion in April of this year, up from Tk 2.38 billion as of June 2007.
The Grameen One: Scheme Two is sponsored by Grameen Bank under the management of AIMS of Bangladesh Limited.
Having a paid-up capital of Tk 1.25 billion, the Scheme is by far the single largest listed mutual fund undertaking in the country.
The FSB will be the first private commercial bank to offer the largest number of primary shares to the general investors.
The bank which began its operation in 2000 will issue 11.5 million shares with the face value of Tk 100 per share. The Net Asset Value (NAV) of the bank is Tk 113.
The bank's credit rating for long term is triple B and for short term, ST-3.
The paid-up capital of the bank is Tk 1.15 billion and the authorised capital is Tk 3.60 billion. The bank has 20 branches across the country and six more branches will be opened soon.
AB Bank is the issue manager of the First Security Bank IPO.
As per securities rules, after getting approval the prospectus will have to be published within 25 days.
The SEC also gave nod to the BRAC Bank for issuing one rights share against every five shares at Tk 500 (including a premium of Tk 400) to raise its paid up capital.
"The commission okayed the proposed premium of the BRAC Bank on the ground that its average share price is more than Tk 1000 in the last six months, " Farhad Ahmed, executive director of the SEC said.
It also gave consent to start operation of an Asset Management Company (AMC) named LR Global Bangladesh AMC Limited.
The paid up capital of company, the fourth AMC in the country, is Tk 30 million. The local company Equity Partners Limited has the share of only Tk 100 of the company and the USA based LR Global Partners owns the majority share.
Founded in 1997, LR Global Partners is currently operating in top cities including New York and Hong Kong and manages fund of about Tk 27 billion.
Meanwhile, the DSE listing sub-committee recommended Tuesday listing of the Titas Gas Transmission and Distribution Company with the bourse.
The subscription for the 'Grameen One: Scheme Two', the second scheme of 'Grameen Mutual Fund One' is likely to begin from June 30.
The AIMS, working for the mutual fund as an asset manger, got consent letter on Tuesday from the Securities and Exchange Commission (SEC).
The SEC in a commission meeting Tuesday also allowed the Titas to float shares under direct listing.
"The listing subcommittee recommended Titas for direct listing. But some additional information is required for beginning the trade. As soon as we get the information, the board meeting will be called in an urgent basis for fixing debut trading," said DSE chief executive officer Salahuddin Ahmed Khan.
The state-run gas company will join the two bourses under direct listing rules with offloading of shares worth Tk 2.14 billion, which is 25 percent of its paid up capital of Tk 8.56 billion.
The face value of each Titas share is fixed at Tk 100. As of June 2007, earning per share (EPS) of Titas Gas was Tk 539. The current EPS stands at Tk 30.07 following the enhancement of the company's paid up capital to Tk 8.56 billion in April of this year, up from Tk 2.38 billion as of June 2007.
The Grameen One: Scheme Two is sponsored by Grameen Bank under the management of AIMS of Bangladesh Limited.
Having a paid-up capital of Tk 1.25 billion, the Scheme is by far the single largest listed mutual fund undertaking in the country.