• Tuesday, Jan 26, 2021
  • Last Update : 09:02 pm

Public issue rules amended: Quota facility for general investors raised by 10%

  • Published at 09:38 pm July 16th, 2019
web-Bangladesh-Securities-and-Exchange-commission-BSEC
File photo of Bangladesh Securities and Exchange Commission Office in Dhaka Syed Zakir Hossain/Dhaka Tribune

According to the final amendment, a company will not be allowed to apply for public issue without using 80% of its previously issued capital

The Bangladesh Securities and Exchange Commission (BSEC) has approved the final amendment to a number of rules tightening capital raising process through initial public offerings (IPO) and raising quota facility for the general investors by 10%.

According to the final amendment to the public issue rules, 2015, a company will not be allowed to apply for public issue without using 80% of its previously issued capital.

The issue of a company will be cancelled, if the total application is below 65% under the fixed price method.

The size of the public issue under the fixed price method must be minimum Tk50 crore after IPO while the size of the public issue under the book building method must be at least Tk75 crore.

The approval was given at a commission meeting presided over by BSEC Chairman M Khairul Hossain at its headquarters in the capital on Tuesday.

The commission also increased the existing one-year lock-in provision to a two-year period for private placement shareholders, to be calculated from the first trading day of the issue. 

The IPO quota facility for the general investors has been raised to 50% from existing 40% under the fixed price method while under the book building method it has been raised to 40% from 30%.

The quota facility for eligible investors has been cut to 50% from 60% under the book building method while it has been slashed to 30% from the current 40% under the fixed price method.

The name and price quotation of any bidder in book building method must not be displayed and the bidder must buy the amount of shares at the prices he/she quotes for. 

Under the book building system, the investors will buy the shares at the recommended rates at auction. Besides, the quantity and price of shares will be as per what the bidders will offer for them. 

Recently, the BSEC formed two committees to amend the private placement (pre-IPO placement) regulation and the book-building method.BSEC Executive Director Mahbub Alam led the four-member committee on amending the private placements regulation.

BSEC Executive Director Ruksana Chowdhury led the five-member committee formed for amending the book-building method. 

54
Facebook 52
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail