IPO proposal of New Line Clothing Ltd approved
BSEC asks KPCL sponsors, directors to stop sales and transfer of shares
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The securities regulator has directed Khulna Power Company Limited (KPCL) to stop the sales and transfer of its shares by sponsors, directors and others holding substantial amount of shares.
The regulatory directive came as the company conducted sales of its shares by sponsors and directors 'concealing' price sensitive information.
On Tuesday, the Bangladesh Securities and Exchange Commission (BSEC) took the decision and said its directive would remain effective until further order.
According to the BSEC, the tenure of contract signed between the KPCL and Bangladesh Power Development Board (BPDB) for 'IPP Contract of KPCL 110MW Barge Mounted Power Plant' expired on October 11, 2018.
The BPDB also requested the KPCL to keep its power plant shut through a letter delivered on October 11, 2018, the BSEC said.
"The company did not disseminate the matter despite it was a price sensitive information," the securities regulator said.
It also said the company's sponsors and directors conducted sales of its shares concealing the price sensitive information.
"Under such a situation, the BSEC has taken a decision of stopping the sales and transfer of the company's shares by sponsors, directors and other holding at least 10 per cent shares," the BSEC said.
The securities regulator has also taken another decision of forming an inquiry committee which will submit a report probing into the matter of the KPCL.
At Tuesday's meeting, the securities regulator approved the IPO (initial public offering) proposal of New Line Clothings Ltd which will raise a capital worth Tk 300 million offloading 30 million shares.
The company's IPO proceeds will be utilised to purchase machineries, expand factory building, repay term loans and bear the IPO expenses.
The company's basic EPS was Tk 1.85, while the NAV with revaluation was Tk 31.63 per share for the year ended on June 30, 2017. The company's NAV without revaluation was Tk 20.52 per share for the same period.
Banco Finance & Investment, Sandhani Life Finance and Southeast Bank Capital Services are working as issue managers of the New Line Clothings.
On Tuesday, the securities regulator has fined Central Pharmaceuticals' managing director and all directors, other than independent and nominated ones, of Tk 0.40 million each for including false information in the annual report.
According to the BSEC, the company provided annual report for the year ended on June 30, 2017 including the auditor's 'unqualified' opinion despite the auditor gave 'qualified' opinion in the financial statement.
As per another BSEC decision, LankaBangla Finance will raise a capital worth Tk 3.0 billion issuing non-convertible subordinated bond.
The tenure of the bond will be six years. The company will raise the capital to strengthen the Tier-II capital base.