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The Securities and Exchange Commission approved two initial public offerings and issued a licence for the country's sixth private asset management company on Tuesday, an SEC official said, reports bdnews24.com.
The decisions came at a board meeting Tuesday, which also decided to cut down the IPO allocation process to five weeks from six, SEC executive director Farhad Ahmed told reporters at his office.
The market regulator has approved the Tk 20 crore IPO of BSRM Steels, a leading manufacturer of reinforced steel.
"The company, with a paid-up capital of Tk 125 crore, has been permitted to float 20 lakh shares of Tk 100 each," said Farhad.
The company's auditors have confirmed that the net asset value (NAV) is Tk 100 per share, the SEC director added.
"Since the company only started its commercial operations from April this year, other information such as earnings per share (EPS) is not yet available," the regulatory official said.
The money raised through the IPO will be used to finance BSRM Steel's working capital, according to the SEC official.
Bay Leasing & Investments (BLI), a non-bank financial institution, has also been permitted to float 10.20 lakh shares worth Tk 25.5 crore.
The face value of each share will be Tk 100, along with a premium of Tk 150, which means the issue price of each share would stand at Tk 250, Farhad said.
The company's paid-up capital is Tk 10.20 crore, while the EPS and NAV are Tk 77.30 and Tk 370.30 respectively.
BLI, which also runs merchant banking operations, floated the IPO as a regulatory requirement, added the SEC official.
SEC also issued an asset management licence on Tuesday to Race Asset Management Private Co Ltd, which is a joint venture between non-resident and resident Bangladeshis.
"The decision came to increase the supply of mutual funds in the capital market, which will definitely create more opportunities for small-scale investors to bet their money on the market through expert hands," said Farhad.
The total paid up capital of the local entity is Tk 2.5 crore, he added.
Tuesday's SEC board meeting also decided that from now on every IPO issuer must distribute refund warrants within the fifth week after closing of subscription.
"That means the primary share allocation lottery would be held in the fourth week," said the SEC official.
He added that the regulator has also directed bourse authorities to post results of IPO lotteries on their websites.
Previously, the results were available only from the issuer companies' websites.
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