The securities regulator has approved the IPO (initial public offering) proposal of Ratanpur Steel Re-Rolling Mills (RSRM) for raising a fund worth Tk 1.0 billion, officials said.
The regulator has also approved the proposal of Tk 3.0 billion Non-convertible Coupon Bearing Subordinated Bond to be issued by the City Bank Limited.
The approvals came Tuesday at a commission meeting held at the office of Bangladesh Securities and Exchange Commission (BSEC).
At the meeting, the BSEC decided to urge the Ministry of Finance (MoF) for extending the timeframe of enjoying quota facility by affected investors in public offerings.
As per the BSEC approval, the RSRM will offload 25 million ordinary shares at an offer price of Tk 40, including a premium of Tk 30 for each ten taka share.
The company will raise the fund through public offering to boost the capital base, repay bank loans and bear the expenses of IPO proceedings.
Considering the weighted average of last five years ended on June 30, 2013, the com pany's consolidated earnings per share (EPS) and net asset value (NAV) are of Tk 4.58 and Tk 53.69 respectively.
The Janata Capital and Investment and Trust Bank Investment have been appointed the manager to the issue of the RSRM.
To comply with the requirements of Basel-II, the City Bank will issue Tk 3.0 billion Non-convertible Coupon Bearing Subordinated Bond among the existing shareholders and others through private placement.
The offer price of each unit of the bond is of Tk 1.0 million.
As per the Tuesday's decision, the securities regulator will request the MoF to extend the timeframe of preserving 20 per cent quota for affected investors in the upcoming IPOs up to June 30, 2015.
As part of capital market stimulus package, the 20 per cent quota was preserved in the IPOs for the investors, who were affected during the 2010-11 stock market debacle, till July 1, 2014.
