Economic Reporter :
Some 25 companies are set to raise an aggregate amount of capital worth Tk 13.34 billion from the capital market. The companies will raise capitals floating IPOs (initial public offerings) under the book building and fixed price method.
Under the book building method, seven companies will raise an aggregate amount of fund worth Tk 8.88 billion. On the other hand, 19 companies will raise an aggregate amount of capital worth Tk 4.46 billion under the fixed price method.
An official of the securities regulator said the approval of pending IPO proposals, other than insurance companies, will depend on compliance with due diligence requirement as per rules.
“We have an urgency of approving the IPOs of insurance companies leniently as they have been paying penalties due to delay in going public,” said the official of Bangladesh Securities and Exchange Commission (BSEC).
Under the book building method, Delta Hospital and Walton Hi-Tech Industries have already obtained the regulator’s approval to fix cut-off prices for raising a capital of Tk 500 million and Tk 1.0 billion respectively.
Of other companies, Lub-rref (Bangladesh) will raise a capital worth Tk Tk 1.5 billion, Mir Akhter Hossain Tk 1.25 billion, Energypac Power Generation Tk 1.5 billion, JMI Hospital Requisite Manufacturing Tk 750 million and Omera Petroleum above Tk 2.38 billion under the book building method.
Most of these companies have already completed IPO road shows.
Another company Energypac Power Generation has also been in the queue of getting the regulatory approval for a long time.
The company had submitted its IPO proposal long ago but failed to get the regulatory approval due to amendment brought in public issue rules.
Later, the company moved to go public under the fixed price method. Finally, the company changed its decision and re-submitted IPO proposal under the book building method.
Of the companies which submitted IPO proposals under fixed price method, Express Insurance has already got the regulatory approval to raise a capital worth Tk 260.79 million.
The BSEC approved the IPO proposal of Express Insurance giving waiver of a clause of public issue regarding capital requirement as this company submitted its proposal before the amendment of rules.
The IPO proposals of another four insurance companies are in pipe line. In September last, the finance minister said non-listed insurance companies will have to enter the capital market by December.
Under the fixed price method, a company must offer at least an amount equivalent to 10 per cent of its paid-up capital or Tk 300 million, whichever is higher, provided that post IPO paid-up capital shall not be less than Tk 500 million.
Asked, the BSEC official said the decision is yet to be final about the regulatory approval to the IPO proposals of non-insurance companies whose capital base is much lower compare to the provision set in public issue rules.
“The non-listed insurers came to us to know the way going public. They also met the regulator of insurers. We have been told to accommodate issues leniently,” the BSEC official said.
Some 25 companies are set to raise an aggregate amount of capital worth Tk 13.34 billion from the capital market. The companies will raise capitals floating IPOs (initial public offerings) under the book building and fixed price method.
Under the book building method, seven companies will raise an aggregate amount of fund worth Tk 8.88 billion. On the other hand, 19 companies will raise an aggregate amount of capital worth Tk 4.46 billion under the fixed price method.
An official of the securities regulator said the approval of pending IPO proposals, other than insurance companies, will depend on compliance with due diligence requirement as per rules.
“We have an urgency of approving the IPOs of insurance companies leniently as they have been paying penalties due to delay in going public,” said the official of Bangladesh Securities and Exchange Commission (BSEC).
Under the book building method, Delta Hospital and Walton Hi-Tech Industries have already obtained the regulator’s approval to fix cut-off prices for raising a capital of Tk 500 million and Tk 1.0 billion respectively.
Of other companies, Lub-rref (Bangladesh) will raise a capital worth Tk Tk 1.5 billion, Mir Akhter Hossain Tk 1.25 billion, Energypac Power Generation Tk 1.5 billion, JMI Hospital Requisite Manufacturing Tk 750 million and Omera Petroleum above Tk 2.38 billion under the book building method.
Most of these companies have already completed IPO road shows.
Another company Energypac Power Generation has also been in the queue of getting the regulatory approval for a long time.
The company had submitted its IPO proposal long ago but failed to get the regulatory approval due to amendment brought in public issue rules.
Later, the company moved to go public under the fixed price method. Finally, the company changed its decision and re-submitted IPO proposal under the book building method.
Of the companies which submitted IPO proposals under fixed price method, Express Insurance has already got the regulatory approval to raise a capital worth Tk 260.79 million.
The BSEC approved the IPO proposal of Express Insurance giving waiver of a clause of public issue regarding capital requirement as this company submitted its proposal before the amendment of rules.
The IPO proposals of another four insurance companies are in pipe line. In September last, the finance minister said non-listed insurance companies will have to enter the capital market by December.
Under the fixed price method, a company must offer at least an amount equivalent to 10 per cent of its paid-up capital or Tk 300 million, whichever is higher, provided that post IPO paid-up capital shall not be less than Tk 500 million.
Asked, the BSEC official said the decision is yet to be final about the regulatory approval to the IPO proposals of non-insurance companies whose capital base is much lower compare to the provision set in public issue rules.
“The non-listed insurers came to us to know the way going public. They also met the regulator of insurers. We have been told to accommodate issues leniently,” the BSEC official said.
