The securities regulator has again allowed Simtex Industries to start public subscription after getting 'satisfactory explanation' relating to financial disclosures from the company, officials have said.
As per the fresh schedule, the public subscription of Simtex Industries will start on September 6 and end on September 14, 2015.
The Bangladesh Securities and Exchange Commission (BSEC) suspended the company's public subscription on August 23, a day before the subscription was scheduled to be started, as some financial disclosures made in the balance sheet were not clear to the regulator.
"The securities regulator has allowed the company to start public subscription as its explanation about financial disclosures was satisfactory," said Md Anwarul Islam, a BSEC executive.
Asked how the company's explanation was satisfactory to the regulator, a BSEC official said the presentation of cash flow was mistakenly mentioned in another place of the balance sheet.
"The company's explanation was satisfactory as there was no net change following correction made in the balance sheet," the BSEC official said.
The subscription of Simtex Industries was scheduled to begin from August 24 last to raise a fund worth Tk 600 million from the public.
As per the securities regulator's approval, Simtex Industries will offload 30 million ordinary shares at an offer price of Tk 20, including a premium of Tk 10 for each ten-taka share.
According to the BSEC, the company will use the funds from the IPO (initial public offering) for capital investments, repayment of bank loans, business expansion and to bear the cost of IPO proceedings.
As per the audited financial statement for the year ended on June 30, 2014, the company's earning per share (EPS) is Tk 3.33, whereas its net asset value (NAV) per share is Tk 19.60.
AFC Capital Ltd and Imperial Capital Ltd have been appointed as issue managers of Simtex Industries' IPO.
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