Three companies have re-submitted their IPO (initial public offering) proposals under the book building method as per the mandatory requirement of the revised Public Issue Rules, officials said.
They said the companies which submitted their revised IPO proposals are STS Holdings, Dhaka Regency Hotel and Amra Technology.
These companies previously submitted IPO proposals with premiums under the fixed price method.
In early December, 2015 the Bangladesh Securities and Exchange Commission (BSEC) approved the amendment brought to Public Issue Rules making the use of the book building method mandatory for the companies willing to offer their primary shares with premium.
Only the companies interested to offer their stocks at face value will be allowed to float IPO under the fixed price method.
Later, in January, 2016 the securities regulator asked some companies, which previously submitted IPO proposals to go public with premiums under fixed price method, to resubmit their proposals under the book building method.
"The companies which previously demanded premiums under the fixed price method were asked to resubmit IPO proposals under book building method by completing road shows," said a BSEC official.
The other companies which were also asked to resubmit IPO proposals under book building method are Aftab Hatchery, AND Telecom, Karim Spinning, Madina Cement Industries, Summit Uttaranchol Power Company, Aman Cement Mills and Shamsul Alamin Real Estate.
Earlier, these companies also submitted IPO proposals with premiums under the fixed price method.
On January 5 last, the securities regulator approved the IPO proposal of Energypac Power Generation which was supposed to offer shares at premium under the fixed-price method.
The regulator, however, later postponed its approval in favour of Energypac Power Generation as the amendment to public issue rules came into effect before approving the IPO proposal.
Asked, the issue manager of the Energypac Power Generation said they are working to submit revised IPO proposal of the company.
In the revised public issue rules, the securities regulator increased the number of disclosures and due-diligence requirements for the issuing companies and issue managers.
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