• Wednesday, Sep 19, 2018
  • Last Update : 01:21 pm

BSEC approves IPO of SS Steel, two bonds

  • Published at 10:16 pm July 17th, 2018
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BSEC has approved a non-convertible floating rate subordinate bond by the Investment Corporation of Bangladesh (ICB), worth Tk2,000 crore. The tenure of the bond will be seven years, and the per unit price will be Tk1 crore

The Bangladesh Securities and Exchange Commission (BSEC) has approved a Tk25 crore Initial Public Offering (IPO) prospectus by SS Steel Limited.

The IPO was approved at a BSEC meeting presided over by its chairman M Khairul Hossain on Tuesday. As per the IPO, SS Steel will offload 25 million ordinary shares at a fixed price of Tk10 each.

According to the Financial Statement ended on June 30, 2017, SS Steel’s Net Asset Value (NAV) per share stood at Tk12 (without revaluation), whereas the weighted average of Earning per Share (EPS) was Tk1.20.

The company will utilize proceeds from the IPO to purchase capital machinery and bear IPO expenses.

Citizen Securities and Investment Limited will act as the issue manager for the IPO.

SS Steel began commercial operations on December 22, 2001. The company is located in the Tongi Industrial Area, Gazipur, and its principal activities include the manufacturing of 500W MS-Deformed Rods, MS-Ingots, and steel for the reinforcement of concrete.

BSEC approves two bonds

BSEC has approved a non-convertible floating rate subordinate bond by the Investment Corporation of Bangladesh (ICB), worth Tk2,000 crore. The tenure of the bond will be seven years, and the per unit price will be Tk1 crore.

ICB Capital Management Limited, Alfa Capital Management Limited, and Roots Investment Limited will jointly serve as the mandated lead arranger.

In addition, BSEC approved a non-convertible floating rate subordinate bond by Al-Arafah Islami Bank Limited, worth Tk500 crore. The tenure of the bond will be seven years and per unit price will be Tk5 lakh.

The bank will issue the bond to strengthen its capital base and meet capital requirements under Tier-II, subject to approval from Bangladesh Bank.

The units of the bond will be sold to banks, financial institutions, insurance companies, corporate bodies, and high net worth individuals through private placement.

Green Delta Insurance Company Limited and Prime Bank Investment Limited will jointly serve as the mandated lead arranger for the bond.

EDGE Bangladesh Mutual Fund approved

BSEC has approved the prospectus for the open-ended EDGE Bangladesh Mutual Fund. The initial size of the EDGE Bangladesh Mutual Fund will be Tk10 crore, with face value of the units at Tk10 each.

Sandhani Life Insurance Company is the trustee of the fund, BRAC Bank serves as the custodian, and EDGE AMC (Asset Management Company) Limited is the asset manager.

Meanwhile, BSEC has fined Saad Securities Limited Tk5 lakh for breaching a number of securities rules, and Salta Capital Limited has been warned by the securities regulator for violating an order by the commission.