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BSEC approves IPO of UPGDCL

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Staff Reporter
Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved the Initial Public Offer (IPO) of United Power Generation & Distribution Company Limited under the book building method.
The approval was given at 531th meeting of the Commission with its chairman Prof M Khairul Hossain in the chair.
The price of the company’s share will be Tk 72 including Tk 62 as premium.
The company will issue 3.30 crore general shares. Of them, 40 percent will be offered to institutional investors and rest of the shares will be given to the affected small investors, mutual fund, Non-resident Bangladeshis (NRB) and general investors.
The earning per share of the company (ended in December 31, 2013) was Tk 5.98 and the net asset value of per share was Tk 23.64.
LankaBangla Investments Limited will perform as the issue manager and ICB Capital Management Limited will be the Registrar to the issue.
Meanwhile, the Commission on February 16 last gave the approval to go for bidding. With the participation of 68 institutional investors, the bidding price was fixed at Tk 72 (with 20 percent upper hand).
Through this IPO, the company will collect Tk 237.60 crore from the market for the redemption of preference share, pay the bank loans and mitigate the IPO expenditure.
The Commission also approved a proposal of Southeast Bank limited to issue Subordinated Floating Rate Bond to collect Tk 300 crore from the market.
The price of the Bond was fixed at Tk 10 lakh. Only the local financial institutions, insurance companies, mutual fund, corporate bodies and rich people will be allowed to buy this Bond through private placement.
The validity of the Bond will be seven years from the date of issue.
The Bank will use the money to fulfill the conditions of Basel-2, increase the capital of Tier 2 and others.
Standard Chartered Bank and Green Delta Insurance Company will act as the Mandated Lead Arranger and Trustee respectively.
On the other hand, the Commission turned down the proposals of Bangladesh Building Systems, Central Pharmaceuticals, Mozaffar Hossain Spinning Mills and JMI Syringes & Medical Devices for issuing right shares.