Trading of the shares of Coppertech Industries will commence on the bourses on Monday (August 5) under 'N' category, officials said.
The Coppertceh, which received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on December 26, 2018, raised a fund worth Tk 200 million under the fixed price method.
On Sunday, the Dhaka Stock Exchange (DSE) gave listing approval to the Coppertech following the regulatory instruction.
On July 24, the securities regulator asked the DSE to enlist the company within 10 working days as per section 5(4) of the listing regulations.
However, the DSE had sought waiver of section 5(3) of the regulations so that the Coppertech could be listed on DSE, as the stipulated timeframe for its listing was expired.
Without exempting section 5(3), the BSEC asked DSE to take steps for the company's listing as per section 5(4).
Section 5(4) provides that the exchange may relax any requirement/provision relating to the listing of any securities.
Approval for the listing of the company was delayed, as the prime bourse found some 'anomalies' in the company's financial statement.
After that the DSE had also sought the regulatory guideline regarding the company's listing amid such 'controversies' in the financial statement.
Without any guideline, the BSEC asked the DSE remit the subscription money into the company's fund.
The Financial Reporting Council (FRC) also took an initiative to justify whether accounting standards were maintained by the auditor in the financial statement.
The Coppertech raised a capital worth Tk 200 million by floating 20 million ordinary shares under the fixed price method.
The company's IPO subscription was held between March 31 and April 9 this year for resident and non-resident Bangladeshis.
The company will utilise the IPO proceeds to purchase plant and machineries, repay bank loans, construct building and IPO expenses.
As per the financial statement for the year ended on June 30, 2018 the company's net asset value (NAV) per share was Tk 12.06 and earnings per share was Tk 2.60.
Located in Hobiganj, the Coppertech Industries is a copper pipe, tube, bus bar, strip, and wire manufacturer in Bangladesh. The company started its commercial operation in June 2014.
The core markets for the product of the company are power plants, AC fridge manufacturing factory and workshop, engineering workshop, electronic product producer and other local customers, according to IPO prospectus.
MTB Capital is working as issue manager of the company's IPO process.
© 2020 - All Rights with The Financial Express