Emerald Oil Industries IPO gets green signal
Tribune Report

The company has been producing rice bran edible oil, Spondon since 2011. Rice bran oil is the oil that is extracted from the inner husk of rice plants

Emerald Oil Industries Limited, rice bran edible oil producer, has got green signal from the securities regulator to go public.

Bangladesh Securities and Exchange Commission (BSEC) has approved the company’s IPO (initial public offering) to raise Tk200m by issuing 20m ordinary shares of Tk10 each, said the regulator in a statement on Tuesday.

The proceeds will be used for repayment of term loan, IPO expenses and strengthening the capital base. The company’s earnings per share was Tk2.85 and net asset value Tk14.06, according to its financial statement as of June 30, 2013.

Alliance Financial Services would serve as the issue manager.

The company has been producing rice bran edible oil – Spondon – since 2011. Rice bran oil is the oil that is extracted from the inner husk of rice plants.

The securities regulator also fined two brokerage firms – RN Trading Ltd, member of the Dhaka Stock Exchange, and Jalalabad Securities Ltd, member of the Chittagong Stock Exchange Tk100,000 each for short selling.

Short selling is the selling of a stock that the seller doesn’t own. More specifically, a short sale is the sale of a security that isn’t owned by the seller, but that is promised to be delivered.

The commission detected that RN Trading went for short selling of 2,000 shares of Fu-Wang Ceramics Ltd on April 23 this year and Jalalabad Securities 2,000 shares of Summit Power on May 15 this year, said the regulator.   

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