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Subscription of Credence First Shariah Unit Fund begins today

FE Report | Published: February 04, 2018 10:51:48 | Updated: February 05, 2018 11:37:25


Internet Photo used only for representation

Subscription of 'Credence First Shariah Unit Fund' will begin today (Sunday) while public subscription of Advent Pharma is set to begin on February 11.

The initial size of the Credence First Shariah Unit Fund, an open-ended mutual fund, is Tk 100 million while Advent Pharma, an animal health care drugs manufacturer, will raise Tk 200 million from the public.

Credence Shariah Fund: The subscription of Credence First Shariah Unit Fund will begin today (Sunday). The initial size of the fund is Tk 100 million.

The Bangladesh Securities & Exchange Commission (BSEC) on January 9 approved the draft prospectus of the Credence First Shariah Unit Fund.

As per the BSEC approval, Credence First Shariah Unit Fund will collect Tk 90 million from unit holders while the sponsors will contribute remaining Tk 10 million. The offer price of the fund's units will be Tk 10 each.

Credence Asset Management Limited (CAML) is the sponsor and fund manager of the Credence First Shariah Unit Fund, whereas Investment Corporation of Bangladesh is the trustee and custodian of the fund. The fund will be managed in a Shariah compliant manner.

Despite the significant growth of Islamic banking products in recent years, the

growth of Islamic capital market products has not been that much encouraging in Bangladesh, the company said in a statement recently.

"CAML believes that there is high demand for well managed Islamic Open Ended Mutual Fund from the retail and institutional investors," the statement said.

The entry of 'Credence First Shariah Unit Fund' is the testimony to commitment of Credence Asset Management towards the development of Islamic capital market products in the country, the statement added.

Advent Pharma: IPO subscription of Advent Pharma is set to begin on February 11 which will raise Tk 200 million from the public.

IPO subscription of eligible investors through electronic subscription system under the fixed price method of the animal health care drugs manufacturer will be continued till February 19.

The securities regulator approved the Advent Pharma's IPO proposal on January 2.

Using the fixed-price method, Advent Pharma will float 20 million ordinary shares of Tk 10 each to raise the said amount.

A market lot is 500 shares and an investor needs Tk 5,000 to apply for per lot of the company's IPO.

The required amount (per lot) of foreign currency for NRBs and foreign applicants for IPO of the company are US$ 60.65 or GBP 44.25 or EUR 49.96, according to Dhaka Stock Exchange (DSE).

The company will use the IPO fund for acquisition of machinery and equipments of Tk 81.43 million, construction of building and other civil works Tk 100.07 million and IPO expenses of Tk 18.50 million.

The company's weighted average earnings per share (EPS) stood at Tk 0.91 as per last four financial statements.

The company has also reported its net asset value (NAV) per share of Tk 12.45 without revaluation, according to financial statement for the year ended on June 30, 2017.

Imperial Capital, Alfa Capital Management and CAPM Advisory are the issue manager of the company's IPO.

The company's pre-IPO paid-up capital is Tk 486 million and authorised capital is Tk 1.0 billion.

Advent Pharma is engaged in manufacturing, importing and marketing of animal health care drugs, nutritional supplements and feed additives for livestock like powder, bolus and liquid dosage forms.

The company was incorporated as a private limited company in January, 2007 and subsequently converted into a public limited company in May, 2016.

After completing all procedure, it will be the 29th listed company in the Dhaka bourse under Pharmaceuticals & Chemicals sector which accounted for 15.40 per cent of the DSE's total market capitalisation.

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