Tung Hai Knitting allowed to go public

The securities regulator Tuesday approved the IPO (initial public offering) proposal of the Tung Hai Knitting and Dyeing (THKD) to raise a fund worth Tk 350 million to boost running capital and repay term loans, officials said.
The regulator has also approved the prospectus of the ICB AMCL Converted First Unit Fund (IACFUF) and the proposal of discontinuing the Padma Islami Life 1st Mutual Fund (PILFMF).
The approvals came at a commission meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
As per the regulatory approval, the THKD will offload 35 million ordinary shares at an offer price of Tk 10 under the fixed price method.
According to the financial statement for the year ended December 31, 2012 the company's earning per share (EPS) and net asset value (NAV) are Tk 1.15 and Tk 13.73 respectively.
AFC Capital and Imperial Capital have been appointed the THKD's issue manager and co-issue manager respectively.
As per the regulatory approval to the prospectus of the IACFUF, the initial size of the open-end fund will be Tk 500 million.
At Tuesday's meeting, the BSEC has decided in principle to abolish the PILFMF following the proposal of the Eastern Bank, the trustee of the mutual fund.
The securities regulator has also extended the timeframe by three months more for submitting the draft prospectus of the Sandhani Life Growth Fund in accordance with the proposal of the fund manager Asian Tiger.
Earlier, the BSEC decided to cancel the registration of the fund.
The regulator has also rejected the proposals of issuing shares against the loans of the Paper Processing and Packaging and Bangladesh Monospool Paper Manufacturing Company as they failed to submit required papers.