The Securities and Exchange Commission on Tuesday approved the initial public offering of the Rangpur Dairy and Food Products Limited.
It was the first IPO approved by the SEC after the restructuring of the stock market regulatory body.
The commission in Tuesday's meeting, however, rejected the IPO proposal of the Central Depository of Bangladesh Limited.
'The commission rejected the IPO proposal of the CDBL considering the crucial role the company is playing in the capital market. The proposed IPO of the company could rise conflict of interest between the company's function and the investors' interest as the company maintains all beneficiary owner's accounts and their details,' said Saifur Rahman, executive director of the SEC.
SEC sources said the commission had sought suggestions from the stakeholders about the IPO proposal of the CDBL and all the stakeholders gave negative opinions about the matter.
Rangpur Dairy and Food Products will raise Tk 16.30 crore by floating 16,341,400 shares at Tk 18 per share, including a premium of Tk 8, and the market lot will be of 200 shares. The company, however, had sought a premium of Tk 15 per share.
The company will issue its shares under fixed-priced method of the IPO and the pre-IPO paid-up capital of the company is Tk 23.65 crore. The earning per share of the company is Tk 0.88 and net asset value is Tk 16.97 per share. The price earning ratio is 20.55.
Alliance Financial Services Limited will be the issue manager to the Rangpur Dairy IPO.
Source : New Age
