Web Coats to raise Tk 50m, get listed on SME platform
Shahjalal Bank's Tk 5b subordinated bonds given regulatory approval
FE REPORT | Wednesday, 6 December 2023
The stock market regulator has given its permission to Web Coats PLC to raise Tk 50 million through a qualified investors offer (QIO).
The approval came on Tuesday at a meeting at the office of the Bangladesh Securities and Exchange Commission (BSEC), presided over by its Chairman Prof. Shibli Rubayat Ul Islam.
As per the regulatory approval, the paper product manufacturer will issue 5 million ordinary shares at a face value of Tk 10 each under the fixed price method.
The fund is intended to ensure long-term financing for the small-capital company.
Only qualified investors are allowed to submit applications for the company's shares.
Incorporated in 2013, Web Coats is a producer of self-adhesive and other industrial paper for export-oriented industries, particularly of the readymade garment sector.
The company will utilise the QIO proceeds for procurement of machinery (Tk 22.25 million), as working capital (Tk 10.78 million), and for loan repayment (Tk 14.27 million). The rest of the fund will be spent on the listing process.
According to the company's financial statements for FY23, its earnings per share stood at Tk 1.50.
The company will not be able to issue bonus shares within three years after the debut trade on the SME platform.
Sonali Investment is working as the issue manager for the QIO process.
The DSE SME platform started its journey in September 2021. Currently, 17 companies are listed on the DSE SME board, while the CSE SME board has 16 companies.
Shahjalal Islami Bank Bonds
The stock market regulator also accepted Shahjalal Islami Bank's proposal to raise Tk 5 billion by issuing mudaraba floating rate, non-convertible, unsecured subordinated bonds.
The bonds will be sold to institutional investors and high net-worth individuals through private placement.
The coupon rate of the bonds will be 6-9 per cent, with a face value of Tk 1 million per unit.
The purpose of the bonds is to strengthen the Tier-11 capital base of the bank.
DBH Finance is working as trustee of the bonds, while Standard Chartered Bank is the arranger of the bonds.
The regulator imposed a condition that the bonds be listed on the exchange's alternative trading board (ATB).