BSEC allows ADN Telecom to determine IPO cut-off price

Imposes penalty of Tk 2.5m on seven Doreen Power executives

FE Report | Published: August 15, 2018 10:26:59 | Updated: August 16, 2018 15:22:38

The securities regulator has allowed ADN Telecom to determine its cut-off price - a requirement for going public under the book building method.

The approval came at a meeting at the office of the Bangladesh Securities and Exchange Commission (BSEC) on Tuesday.

As per the public issue rules, eligible investors and mutual funds are allowed to purchase 50 per cent and 10 per cent shares respectively at the cut-off price.

The general public and non-resident Bangladeshis (NRBs) are allowed to purchase 30 per cent and 10 per cent shares respectively at 10 per cent discount on the cut-off price.

As per the regulatory approval, ADN Telecom will raise a capital worth Tk 570 million under the book building method.

The company will utilise the IPO (initial public offering) fund to develop infrastructure, establish data centre, repay bank loans and bear the IPO expenses.

As per the financial statement for the year ended on June 30 last year, the net asset value (NAV) per share is Tk 16.13. The basic EPS (earnings per share) and adjusted EPS are Tk 2.52 and Tk 2.36 respectively. The weighted average EPS stood at Tk 1.81.

Earlier in October 2017, the company completed IPO road show as part of going public under the book building method.

ADN Telecom is one of the leading IT and telecommunication service providers in Bangladesh, offering a wide range of data, voice, and internet services to its local and international clients.

ICB Capital Management is working as the issue manager of ADN Telecom.

Meanwhile, the BSEC imposed an aggregate amount of penalty worth Tk 2.5 million on seven senior executives of Doreen Power Generations and Systems Limited (DPGSL) as they purchased shares of DPGSL during a prohibition period.

Some top officials of DPGSL and its subsidiary company-Dhaka Northern Power Generation Limited (DNPGL) - have breached insider trading rules by purchasing the shares of DPGSL before publishing price sensitive information. They also purchased the company's shares during prohibition period.

As per the BSEC decision, Wahiduzzaman Khan, DGM of DNPGL, and Ms Chowdhury Farah Naz Samia, wife of DPGSL director Mostafa Moyeen, will have to pay a penalty worth Tk 1.0 million each.

Besides, chief financial officer of DPGSL Afroz Alam, independent director Mahtab Bin Ahmed, company secretary Masudur Rahman, general manager Iqbal Hossain, and senior general manager Mohammad Fazle Elahi Khan will have to pay a penalty worth Tk 0.1 million each.

The securities regulator has also decided to warn Biswajit Das & Associates, Yeakub Ali Khandakar & Associates, IFAD Group, Md. Fazlur Rahman Jamali, Prime Islami Securities, Anis Uddin and Mohammad Shafiqul Islam as they conducted trading of the shares of DPGSL beyond existing rules.

The BSEC has also imposed a penalty worth Tk 0.2 million on Dynamic Securities Consultants, a DSE broker, as its consolidated customers' account has shortage of fund.

United Airways (BD) will also be warned of its failure to submit audited financial statement for the years ended on June 30, 2015 and June 30, 2016.

The company also failed to submit a half-yearly report and some quarterly reports in 2016 and 2017.


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