BSEC approves Tk 150m IPO of BD Thai Food & Beverage
Union Bank, Union Insurance and BD Thai Food employees to get 15pc IPO shares each
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The securities regulator has approved the initial public offering (IPO) proposal of BD Thai Food & Beverage Ltd to raise a capital worth Tk 150 million from the capital market.
The Bangladesh Securities and Exchange Commission (BSEC) approved the company’s IPO proposal at a meeting on Sunday.
BSEC Chairman Prof. Shibli Rubayat-Ul-Islam presided over the meeting, according to a press release.
As per the BSEC approval, under the fixed price method, BD Thai Food & Beverage will offload 15 million ordinary shares at an offer price of Tk 10 each.
The company will utilise the IPO proceeds for purchasing machinery and equipment, land development, building construction and bearing the IPO expenses.
According to the financial statement ended on June 30, 2020, the company’s net asset value (NAV) per share (NAV without revaluation) was Tk 12.82 and (NAV with revaluation) of Tk 14.23, the weighted average earnings per share (EPS) for the last five years stood at Tk 0.63.
The company’s paid-up capital is Tk 665 million. Lock in for all existing shareholders for three years from the first trading date in the exchanges.
Besides, the company’s sponsor-directors will not be entitled to get dividend until the company’s EPS to reach Tk 1.0 or above, as per the BSEC approval.
The BSEC has also decided to allow the BD Thai Food & Beverage to disburse 15 per cent of IPO shares to its employees and lock-in period for two years.
The company will not be able to declare, approve and distribute dividends before its listing on the bourses, according to BSEC conditions.
BLI Capital and Unicap Investment will jointly act as the issue manager for the IPO process.
Incorporated in 2010, BD Thai Food & Beverage Limited (BTFBL) is a concern of BD Thai Group. The company is engaged to produce beverage, confectionery and spices items.
On Sunday’s meeting, the BSEC also allowed the Union Bank to distribute 15 per cent of IPO shares to its employees and lock-in period for two years.
Earlier on September 5, the capital market regulator approved the Tk 4.28 billion IPO proposal of Union Bank. The fourth-generation private commercial bank will issue 428 million ordinary shares of Tk 10 each under the fixed-price method.
The stock market regulator also allowed Union Insurance to distribute 15 per cent of IPO shares to its employees and lock-in period for two years.
Earlier on June 23, the BSEC approved the Tk 190 million IPO proposal of Union Insurance. As per the regulatory approval, the insurer will issue 19 million ordinary shares of Tk 10 each under the fixed-price method.
The BSEC also decided to file a case against Shurwid Industries as the company announced a 10 per cent cash dividend for the year ended on June 30, 2019, despite no financial ability and failed to disburse the announced dividend.
The BSEC has decided to file a case against the responsible persons of Shurwid Industries based on the recommendation of the enquiry committee as they cheated the investors.