The securities regulator has lifted its embargo on IPO (initial public offering) subscription of Asiatic Laboratories, meaning the company can now collect money from the primary market.
The regulator took the decision at a meeting on Tuesday after an accurate valuation of the company's assets and payment of the penalty imposed on directors, sources familiar with the matter told the FE.
The bidding price of Tk 50 will remain unchanged, as the company will not be given any additional benefit, said BSEC commissioner Dr. Shaikh Shamsuddin Ahmed.
The drug maker will issue about 34.55 million ordinary shares, of which 25 per cent or 8.84 million have been kept reserved for eligible investors.
The remaining 25.91 million shares will be issued to the general public, including non-resident Bangladeshis.
They will get IPO shares at only Tk 20 each because the securities regulator allowed the general investors to get IPO shares at 30 per cent discount on the cut-off price or Tk 20 each share, whichever is lower.
On January 15, the securities regulator suspended the IPO subscription over alleged overvaluation of assets and disputes in ownership.
Later, the Bangladesh Securities and Exchange Commission (BSEC) conducted an investigation and imposed a penalty of Tk 27.5 million on five directors including the chairman and managing director.
Mr Ahmed said the regulator had found nothing wrong in the asset valuation in a special audit. The regulator also received the fines imposed on the company's directors.
Requesting not to be named, another BSEC official told the FE that Asiatic Laboratories had purchased a piece of land long ago in the capital's Tejgaon area but got it registered showing a much lower price than the actual price in a bid to bring down the registration cost.
The land price rose significantly over the years, and the company submitted a fake deed in line with the current market price to the BSEC, he added.
At Tuesday's meeting, the securities regulator also approved 1st zero coupon bonds worth more than Tk 3.74 billion to be issued by National Housing Finance and Investment.
The discount rate, also interest rate, will be within 9 per cent and the bonds will be issued to institutional investors and high net-worth individuals through private placements.
The company will utilise the fund to provide house loans. Of the interest income from the investment, 10 per cent will be reinvested in government securities.
Meanwhile, the securities regulator on Tuesday asked the Dhaka Stock Exchange (DSE) to look into the abnormal share transactions of Imam Button Industries.
The premier bourse will have to submit an investigation report to the commission within 15 working days.
The regulatory move came following an 86 per cent hike in the company's share price to Tk 194.10 between September 7 and October 26.
The company's share price closed at Tk 192.80 on Tuesday, with a 1.43 per cent loss from the previous session.
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