SEC approves new IPO, right shares

The Securities and Exchange Commission has approved one new initial public offering and right shares of two listed companies.

“Mobil Jamuna Bangladesh Limited has got the approval of the commission to float IPO,” SEC executive director Anwarul Kabir Bhuiyan told journalists on Sunday.

MJBL will come to the capital market under the book building method and plans to raise Tk 508 crore.

The company plans to float 40 million shares with a face value of Tk 10.

Indicative price per share is proposed to be Tk 127, which means that the investors will bid for the share and the lowest price among the bidders will be fixed as the IPO price.

MJBL plans to buy land in Gulshan, build new plant and purchase tanker for Liquid Petroleum Gas Manufacture Limited at Khulna with the capital.

According to the financial statement of 2009, against each share with face value of Tk 10, the MJBL has income of Tk 2.45 and asset worth Tk 11.70.

The company has paid-up capital of Tk 140 crore and Prime Finance will work as the issue manager for MJBL.

Market regulator has also okayed issuance of right shares for Exim Bank and Agni Systems Limited.

Shareholders of both the issues will get one right share against two general shares.

For the issue of Exim Bank, there is no premium for the right shares and the face value will be Tk 10.

Agni Systems has decided to take Tk 10 from its share holders as premium and the price of the shares would be Tk 20.

The SEC has decided also to extend time for banks to separate their brokerage houses from their merchant banks until Nov 30.

Earlier, the market regulator asked all the banks to finish the separation by Friday (Oct 1).

Kabir told reporters any bank failing to complete the separation will face ‘serious actions’.

“The SEC will cancel margin loan facility for the clients of those brokerage houses and the merchant banks if the bank fails to finish the separation by that time,” he added.

Source: bdnews24.com

BO account maintenance fee goes up.

Star Business Report

The stockmarket regulator has imposed an additional Tk 200 in annual maintenance fee on each beneficiary owner (BO) account.

The decision effective from July takes the total annual maintenance fee to Tk 500.

The Securities and Exchange Commission (SEC) took the decision at a meeting yesterday in a bid to increase government revenue from stockmarket. SEC Chairman Ziaul Haque Khondker presided over the meeting.

The maintenance fee will go to the state coffers, and the government will receive around Tk 50 crore a year from around 25 lakh BO accounts now active in capital market.

The SEC first introduced a Tk 300 annual maintenance fee in 2007 to stop the opening of fake or shady BO accounts by using other person's information.

According to rules, of the annual fee of Tk 300, a depository participant gets Tk 100, the CDBL (Central Depository of Bangladesh Limited) Tk 150 and the SEC Tk 50.

Previously, the BO account holders had to pay a custody fee annually to the CDBL, if there were shares in the accounts. The custody fee was calculated on the basis of existing shares in a BO account and an account holder had to pay 0.05 percent of the current market value of the shares.

But it was seen in many occasions that a group of investors participate in the IPOs with many BO accounts, which ultimately cuts the real investors' competitiveness.

A prospective investor pays up to Tk 1,000 to open a BO account.

ACTIVE FINE CHEMICALS IPO APPROVED

Star Business Report
 
At yesterday's meeting, the SEC also gave a go-ahead to Active Fine Chemicals Ltd, a chemical reagent and active pharmaceutical ingredients (API) maker, to raise Tk 16 crore from stockmarket.
Active Fine Chemicals will float 1.6 crore ordinary shares of Tk 10 each to raise the funds, which the company said will strengthen its foothold in a sector that is now heavily dependent on imports.
It will also use a portion of the money to pay off bank loans that it took against its project established in 2004 on 10 acres of land in Munshiganj. The company will pay off Tk 6.55 crore bank loans, while the rest of the amount will be added to the working capital structure for business expansion and for IPO (initial public offering) expenditure.
The company's existing paid-up capital is Tk 24 crore, of which Tk 4 crore was raised through private placement.
As of December 2009, the company's earnings per share (EPS) were Tk 0.51 on net turnover of Tk 2.25 crore. The EPS has been projected to reach Tk 2.30 by the year-end.
As of December 2009, the company's net asset value (NAV) per share was Tk 11.57.
Janata Bank is the issue manager of Active Fine Chemicals IPO.
At present, 20 pharmaceuticals and chemicals companies are listed on the stockmarket.