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The securities regulator has issued revised public issue rules, setting new IPO (initial public offering) quotas for general and other eligible investors (EIs).
To this effect, a gazette notification has been published on the amendments brought to the Bangladesh Securities and Exchange Commission (Public Issue) Rules 2015.
In the revised rules, the Bangladesh Securities and Exchange Commission (BSEC) has included an optional scope of issuing 15 per cent of the IPO shares under private offer.
But no collection of subscription or allotment of shares would be made under private offer before the commission's consent to any IPO, the rules said.
Excluding the portion of the securities under the private offer, general public, including NRBs, and the EIs, including mutual funds (MFs), would avail 75 per cent and 25 per cent IPO quota respectively under the fixed price method.
The MFs have been offered 5.0 per cent IPO quota, which previously was 10 per cent.
Excluding the portion of the securities under the private offer, general public and the EIs would avail 75 per cent and 25 per cent IPO quota under the book building method. The EIs would also include the MFs and Collective Investment Schemes (CISs).
Previously, general public, including NRBs, were allowed to avail 50 per cent and 40 per cent IPO quota under fixed price and book building method respectively.
The amount of public offer would be at least 30 per cent of the issuer's post paid-up capital worth Tk 750 million or below, the rules said.
The amount of public offer would be at least 20 per cent of the issuer's post paid-up capital worth above Tk 750 million, but not more than Tk 1.5 billion.
The amount of public offer would be at least 10 per cent of the post-paid up capital worth above Tk 1.5 billion.