The securities regulator Thursday approved the IPO (initial public offering) proposal of IFAD Autos, which will raise a fund of Tk 637.5 million under fixed price method, officials said.
The approval came at a commission meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
As per the BSEC approval, IFAD Autos will offload 21.25 million ordinary shares at an offer price of Tk 30, including a premium of Tk 20 for each ten taka share.
The fund to be raised by IFAD will be used for business expansion, repayment of bank loan and the expenses of IPO proceedings.
As per the audited financial statement for the year ended on June 30, 2014, the earning per share (EPS) and net asset value (NAV) of the IFAD Autos are Tk 5.16 and Tk 44.12 respectively.
Banco Finance and Investment and Alpha Capital Management are working as issue manager of the IFAD Autos.
The regulator also decided to take necessary action against the Shahjibazar Power Company Limited (SPCL) because the company did not the publish price sensitive information regarding the commercial production of its subsidiary.
It said the SPCL did not publish the information regarding the starting of commercial operation of Petromax Refinery, a subsidiary of the SPCL, as price sensitive information.
"The information should have been published as soon as the company became listed with the exchanges. The commission decided to refer the matter to the enforcement department for next course of action against the company," the BSEC said in a statement.
jahangir_fe@yahoo.com