SEC forms committee to examine proposed prices for IPO

Star (July 27, 2011)

The Securities and Exchange Commission has formed a committee to review price proposals of companies seeking to list on the stockmarket using the fixed price method.
Members of the committee will be presidents of the Institute of Chartered Accountants of Bangladesh and the Institute of Cost and Management Accountants of Bangladesh, chief executive officers of Dhaka and Chittagong stock exchanges, and chairman of finance or accounting department of Dhaka University or a representative nominated by the department.
The committee was formed at a meeting of the stockmarket regulator in Dhaka yesterday with SEC Chairman Professor M Khairul Hossain in the chair.
In another move, the SEC decided to form a committee to examine the errors made by authorised representatives of brokerage houses, said Saifur Rahman, an SEC executive director.
After scrutinising the errors, the committee will submit a recommendation to the commission on formulation of a guideline on authorised representatives.
The SEC also decided to send the proposed draft guidelines on book building rules amendment to the stakeholders for their observation.
At the meeting, the regulator also approved rights offer of United Airways, and allowed Beximco to increase its paid-up capital.
The United Airways will offer one rights share for each existing share at an issue price of Tk 15, including Tk 5 as premium, Rahman told reporters.
The airline, with existing paid-up capital of Tk 210 crore, will raise Tk 315 crore through floating 21 crore rights shares.
The United Airways sought Tk 10 as premium, but the SEC approved Tk 5 as premium.
The SEC official also said Beximco sought approval from the commission to increase its paid-up capital, as the company is going to acquire one of its subsidiary company, Bextex.
Beximco will issue 10.72 crore new shares of Tk 10 each totaling Tk 107.28 crore.
Earlier, Beximco and Bextex won approval from the High Court for their previously announced amalgamation.
Beximco Textiles (commonly known as Bextex) will merge with Beximco, the flagship company of Beximco Group, at an exchange ratio of one Beximco share for five Bextex shares.