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The securities regulator has approved the IPO (initial public offering) proposal of Runner Automobiles which will raise a capital worth Tk 1.0 billion under book building method.
On completion of relevant process of determining cut-off price, the Bangladesh Securities and Exchange Commission (BSEC) gave its final approval to the company's IPO proposal on Tuesday.
As per the BSEC approval, Runner Automobiles will offload above 13.93 million shares to raise Tk 1.0 billion.
The fund will be utilised for the purpose of research and development works, purchasing machinery, repaying bank loans and bearing the IPO expense.
The cut-off price of the shares of Runner Automobiles has already been fixed at Tk 75 each as discovered by eligible investors (EIs) through bidding under the book building method.
Of 13.93 million shares, above 8.33 million shares will be issued to the EIs at cut-off price.
Remaining 5.59 million shares will be issued to general investors through public offering at a price of Tk 67 each.
According to financial statements for the year ended on June 30, 2017, the company's net asset value (NAV) per share is Tk 55.70, with revaluation reserve.
And, the value is Tk 41.94 without revaluation reserve. The weighted average of the EPS (earnings per share) is Tk 3.31.
At Tuesday's meeting, the securities regulator also approved two proposals of raising capital by two banks through subordinate bonds.
As per the BSEC approval, United Commercial Bank will raise a capital worth Tk 8.0 billion through redeemable non-convertible floating rate subordinate bond having a tenure of seven years.
The company will raise the capital to strengthen its Tier-II capital base.
Shahjalal Islami Bank will raise a capital worth Tk 6.0 billion through Mudaraba Redeemable Floating Rate Subordinate Bond having a tenure of seven years.
The company will raise the capital to strengthen its Tier-II capital base.