FE Report (November 16, 2010)
Securities and Exchange Commission (SEC) has relaxed the requirement of paid-up capital reducing it to Tk 300 from Tk 400 million for a company seeking to go public.
The SEC issued a notification Sunday to this effect following a decision taken at the commission meeting on October 21 last, with its chairman Ziaul Haque Khondker in the chair.
An SEC official said the notification will be published in gazette and made effective immediately.
The SEC notification has also relaxed some book building regulations for power and energy companies willing to raise fund from the stock market for financing new power plants or expansion of the existing ones.
Earlier on March 11, the SEC set the minimum paid-up capital requirement at Tk 400 million for a company seeking to go public.
However, from now on the minimum size of IPO will have to be Tk 120 million, but the amount in no way will be less than ten per cent of a company's total paid-up capital, which is Tk 300 million, the notification said.
The market lot must be Tk1000 worth of securities at face value or multiple thereof.
The requirement for minimum period of commercial operation and profitability has been set at one year for the companies in the thrust sector such as power and infrastructure going public under book building method.
But under the existing book building method rules, a company intending to go public must be in commercial operation for at least immediate past three years, must have profit in two years out of the immediate past three completed financial years and must have no accumulated loss at the time of application.
However, the regulator has relaxed the operational and profitability period for power and energy companies following a proposal submitted by Bangladesh Association of Publicly Listed Companies.
The eligible institutional investors will not be allowed to participate in the bidding unless they participate and quote price in the road show for setting the indicative price of concerned issue, which will go public under book building method.
The issuer and issue manager will submit jointly the attendance sheet and the quoted price by the eligible institutional investors along with the draft prospectus to the SEC.
The SEC issued a notification Sunday to this effect following a decision taken at the commission meeting on October 21 last, with its chairman Ziaul Haque Khondker in the chair.
An SEC official said the notification will be published in gazette and made effective immediately.
The SEC notification has also relaxed some book building regulations for power and energy companies willing to raise fund from the stock market for financing new power plants or expansion of the existing ones.
Earlier on March 11, the SEC set the minimum paid-up capital requirement at Tk 400 million for a company seeking to go public.
However, from now on the minimum size of IPO will have to be Tk 120 million, but the amount in no way will be less than ten per cent of a company's total paid-up capital, which is Tk 300 million, the notification said.
The market lot must be Tk1000 worth of securities at face value or multiple thereof.
The requirement for minimum period of commercial operation and profitability has been set at one year for the companies in the thrust sector such as power and infrastructure going public under book building method.
But under the existing book building method rules, a company intending to go public must be in commercial operation for at least immediate past three years, must have profit in two years out of the immediate past three completed financial years and must have no accumulated loss at the time of application.
However, the regulator has relaxed the operational and profitability period for power and energy companies following a proposal submitted by Bangladesh Association of Publicly Listed Companies.
The eligible institutional investors will not be allowed to participate in the bidding unless they participate and quote price in the road show for setting the indicative price of concerned issue, which will go public under book building method.
The issuer and issue manager will submit jointly the attendance sheet and the quoted price by the eligible institutional investors along with the draft prospectus to the SEC.
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