BSEC approves VFS Thread IPO, Prime Bank subordinate bond

The securities regulator has approved the IPO (initial public offering) proposal of VFS Thread Dyeing, which will raise a capital worth Tk 220 million under fixed price method.

The approval came at a meeting held at the office of Bangladesh Securities and Exchange Commission (BSEC) on Tuesday.

As per the approval, the company will issue 22 million ordinary shares at an offer price of Tk 10 each.

The company will utilise the IPO proceeds to purchase plant and machinery, repay bank loans and bear the IPO expense.

According to financial statement for the year ended on June 30, 2017, the company's net asset value (NAV) per share stood at Tk 19.90 (without revaluation), while the weighted average of earnings per share (EPS) is Tk 2.02.

Citizen Securities and Investment and First Security Islami Capital and Investment are working as issue managers of the VFS Thread Dyeing.

At the meeting, the securities regulator also approved the proposal of Tk 7.0 billion floating rate non-convertible subordinate bond to be issued by Prime Bank.

The tenure of the bond will be seven years and the full redemption will be completed within this period.

The bond will be issued to financial institutes, insurance companies, different funds, corporate bodies and eligible investors through private placement.

Prime Bank will fulfil the condition of Tier-II Capital Base with the funds to be raised through issuing the bond.

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