Star (November 26, 2010)
Some changes have been brought about in book-building method.
The Securities and Exchange Commission at a meeting presided over by its Chairman Ziaul Haque Khondker yesterday decided to go for such changes to make the pricing mechanism more transparent.
As per the amendments, the companies seeking to go public in line with the book-building are not allowed to mention expec-ted or future earnings in the prospectuses.
“Institutional investors will determine the indicative price of a company's shares analysing the previous years' earnings,” said Farhad Ahmed, the spokesman and an executive director of SEC.
He said such investors who will intend to participate in the bidding to discover a company's share price, they will have to inform the Dhaka and Chittagong stock exchanges, Bangladesh Association of Publicly Listed Companies, Bangladesh Merchant Bankers Association and Bangladesh Insurance Association at least five days before the bidding.
The bidders will also have to
participate in the road show organised by an issuer company or an issue manager, he said.
Ahmed said from now on IPO process under book-building method will have to be completed within 15 days of the bidding time, instead of 25 days.
The SEC official said the commission also decided to cut the bidding period to two days from five days.
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