FE Report (October 04, 2010)
The Securities and Exchange Commission (SEC) gave Sunday its go-ahead to an oil marketing firm, partly owned by the government, to launch what could become the country's second biggest IPO or Initial Public Offering.
Officials said the commission has allowed Mobil Jamuna Bangladesh Limited (MJBL) to raise Tk 5.08 billion by offloading 40 million shares under the book building method. The company's indicative price is Tk 127.0.
Global energy group ExxonMobil and state-owned Jamuna Oil Company Ltd, and EC Securities Limited, an investment arm of East Coast Group, have stakes in the 12-year-old MJBL. The company was previously known as Mobil Jamuna Lubricants Ltd.
The approval came at a meeting, chaired by the SEC chairman Ziaul Haque Khondker, which also okayed the rights offers by private lender Exim Bank Ltd and Indian-owned internet provider Agni Systems Ltd.
Analysts say MJBL's offering is set to become the country's second largest IPO after mobile telephony goliath Grameenphone.
GrameenPhone, owned by Norwegian Telenor Group and Bangladesh's Grameen Bank, raised US$ 65 million in an IPO by offloading 69.40 million shares at a face value of Tk 10 each. The GP share also carried a premium of Tk.60.
MJBL said it would offload 40 million ordinary shares of Tk 10.0 under the book building method.
Its officials said the MJBL with a paid-up equity of Tk 1.40 billion has already lined up projects as part of diversifying its business.
The company has decided to allow institutional investors to buy eight million shares in a bidding that will fix the final price of shares.
However, the general public will be able to buy 24 million shares. The mutual funds and non-resident Bangladeshis (NRB) will be offered to snap up 4.0 million shares each.
MJBL began its journey as a foreign project in 1998 before being incorporated in the same year. In 2003, it started producing advanced lubricants products.
The oil marketing firm's first quarter net profit in the current year amounted to Tk 123.88 million while its net asset value per share is Tk 11.73.
Exim Bank will offer one rights shares against two existing shares at an offer price of Tk 10.0 without any premium.
Agni Systems Limited will offer one rights shares against two existing shares at an offer price of Tk 20.0, including a premium of Tk 10.0.
The meeting has decided to extend the time period for brokerage houses and merchant banks by two months to November 30, asking them to establish separate entities.
The SEC said if the parent companies fail to comply with the deadline, the regulator will restrict them to provide margin loans.
The Securities and Exchange Commission (SEC) gave Sunday its go-ahead to an oil marketing firm, partly owned by the government, to launch what could become the country's second biggest IPO or Initial Public Offering.
Officials said the commission has allowed Mobil Jamuna Bangladesh Limited (MJBL) to raise Tk 5.08 billion by offloading 40 million shares under the book building method. The company's indicative price is Tk 127.0.
Global energy group ExxonMobil and state-owned Jamuna Oil Company Ltd, and EC Securities Limited, an investment arm of East Coast Group, have stakes in the 12-year-old MJBL. The company was previously known as Mobil Jamuna Lubricants Ltd.
The approval came at a meeting, chaired by the SEC chairman Ziaul Haque Khondker, which also okayed the rights offers by private lender Exim Bank Ltd and Indian-owned internet provider Agni Systems Ltd.
Analysts say MJBL's offering is set to become the country's second largest IPO after mobile telephony goliath Grameenphone.
GrameenPhone, owned by Norwegian Telenor Group and Bangladesh's Grameen Bank, raised US$ 65 million in an IPO by offloading 69.40 million shares at a face value of Tk 10 each. The GP share also carried a premium of Tk.60.
MJBL said it would offload 40 million ordinary shares of Tk 10.0 under the book building method.
Its officials said the MJBL with a paid-up equity of Tk 1.40 billion has already lined up projects as part of diversifying its business.
The company has decided to allow institutional investors to buy eight million shares in a bidding that will fix the final price of shares.
However, the general public will be able to buy 24 million shares. The mutual funds and non-resident Bangladeshis (NRB) will be offered to snap up 4.0 million shares each.
MJBL began its journey as a foreign project in 1998 before being incorporated in the same year. In 2003, it started producing advanced lubricants products.
The oil marketing firm's first quarter net profit in the current year amounted to Tk 123.88 million while its net asset value per share is Tk 11.73.
Exim Bank will offer one rights shares against two existing shares at an offer price of Tk 10.0 without any premium.
Agni Systems Limited will offer one rights shares against two existing shares at an offer price of Tk 20.0, including a premium of Tk 10.0.
The meeting has decided to extend the time period for brokerage houses and merchant banks by two months to November 30, asking them to establish separate entities.
The SEC said if the parent companies fail to comply with the deadline, the regulator will restrict them to provide margin loans.
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