BSEC extends timeframe till December 31, 2020
Silco Pharma's IPO gets approval
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The securities regulator has extended the timeframe till December 31, 2020 for keeping provision against unrealised losses in margin accounts of stock dealers' and stock brokers' clients.
The unrealised losses took place due to revaluation of portfolios of the merchant banks and stock dealers and their clients.
The existing deadline of keeping provision against unrealised losses will be ended on December 31, 2018. In 2017, the BSEC also set December 31, 2018 as the deadline for provisioning the unrealised losses.
The latest decision came at a meeting of the Bangladesh Securities and Exchange Commission (BSEC) on Wednesday, presided over by BSEC Chairman M Khairul Hossain.
The securities regulator has taken the decision following the plea of DSE Brokers Association of Bangladesh (DBA), according to a statement issued by BSEC.
DSE Brokers Association on December 9 urged the commission to extend the timeframe by three more years, mentioning the overall bearish trend in the capital market
The market situation has also been taken into account while taking the decision of extending the deadline of keeping provision, BSEC official said.
At Wednesday's meeting, the securities regulator approved the Silco Pharmaceutical's application to raise Tk 300 million from public.
Using the fixed-price method, Silco Pharmaceuticals will float 30 million ordinary shares of Tk 10 each, according to the BSEC approval.
As of June 2017, five financial years' weighted average earnings-per share (EPS) of the company stood at Tk 1.46 and net asset value (NAV) per share 25.41.
The company will utilise the IPO proceeds to construct factory building, purchase machinery and delivery van and bear the IPO expenses, according to the BSEC statement.
City Bank Capital Resources, EBL Investments and Citizen Securities & Investment are jointly working as issue managers of the company's IPO.
Located in Sylhet, Silco Pharmaceuticals, is one of the fastest growing pharmaceutical companies in Bangladesh since 1997 and is now on its way to becoming a high-performance global player, according to its official website.
The company started its journey with 10 products. Now, it manufactures 108 products. In each year, Silco Pharma is introducing more than 10-20 new products.
After completing all formalities, Silco Pharmaceuticals will be the 32nd listed company under the 'Pharmaceutical & Chemicals' sector in the DSE. The Pharmaceutical & Chemicals' sector accounts for 15.50 per cent of the DSE's total market capitalisation.