The securities regulator Tuesday gave consent to Energypac Power Generation Limited (EPGL) to raise Tk 418.25 million from public through initial public offering (IPO).
The approval came at a meeting of the Bangladesh Securities and Exchange Commission (BSEC) with its Chairman M Khairul Hossain in the chair, said a BSEC statement.
Using the fixed price method, Energypac Power Generation will float above 16.73 million ordinary shares of Tk 10 each at an offer price of Tk 25, including a premium of Tk 15, according to the BSEC statement.
Energypac Power, which is engaged in several diversified businesses including trading of standby and base load generators, will use the IPO proceedings to repay its bank loans, working capital (investment in inventory of trading business) and IPO expenses, the BSEC statement said.
As per the audited financial statement as of June 30, 2015, the five years` weighted average earnings per share (EPS) of the company was at Tk 2.91 and net asset value (NAV) was at Tk 31.13.
IDLC Investments Limited will manage the initial public offering of Energypac Power Generation.
At Tuesday`s meeting, the securities regulator also approved the draft prospectus of open-end VIPB Accelerated Income Unit Fund worth Tk 200 million.
The sponsors of the fund will contribute Tk 20 million while Tk 180 million will be raised from public through sales of units. Face value per unit is Tk 10.
VIPB Asset Management Company will manage the fund and Investment Corporation of Bangladesh (ICB) is custodian of the fund.
In another move, the securities regulator received the financial literacy committee`s report and decided to form two committees in this regard-steering committee and technical committee in line with the financial literacy committee`s recommendations.
In August last year, the securities regulator took steps to introduce nationwide `financial literacy` service in an effort to ensure investors` protection by reducing speculation and formed a four-member committee to formulate a policy guideline on `financial literacy`.
The BSEC chairman M Khairul Hossain will be the head of the steering committee, said the BSEC statement.
At Tuesday`s meeting, the BSEC fined Tk 1.5 million to NCCB Securities and Financial Services Ltd for violating securities rules.
NCCB Securities violated securities rules as it did not separate the consolidated customers` account and disbursed margin loans for buying "Z" category shares, said the BSEC statement.
The securities regulator also asked the NCCB Securities to submit update report of consolidated customers` account by January 31, 2016.
In another move, the BSEC imposed penalty of Tk 0.5 million each directors of CVO Petrochemical Refinery Ltd.
CVO Petrochemical distributed 5.0 per cent cash dividend for the year ended on June 30, 2014 despite negative earning, which gave misleading information to the investors, said the BSEC statement.
Source: Financial express