Securities and Exchange Commission approved Four IPO Proposals

The Securities and Exchange Commission (SEC) Wednesday approved the IPO (initial public offerings) proposals of two companies and two mutual funds.

The commission also gave approval to a financial institution to issue rights offer.

The Modern Poly Industries Limited, Alliance Holdings Limited, Prime Finance First Unit Fund and PHP First Mutual fund were given the go-ahead to be listed on stock exchanges.

The approvals came after a commission meeting held at the SEC building with its chairman Ziaul Haq Khondker in the chair.

After the commission meeting, SEC's executive director Anwarul Kabir Bhuiyan said the securities regulator okayed four IPO proposals to jack up the share supply in the market.

Mr. Kabir said Phoenix Finance and Investment Limited will offer one rights share against five existing shares. The company will issue 8,74,087 rights shares at an offering price of Tk 200 including a premium Tk 100 per share.

Under the book building method, Modern Poly Industries will offer 30 million ordinary shares. The face value of the shares is Tk 10 each whereas its indicative price is Tk 64.

The company's paid-up capital is Tk 504 million and net asset value (NAV) per share and earning per share (EPS) are 26.62 and Tk 4.76 respectively as of December 31, 2009.

Following the similar method, Alliance Holdings Limited (AHL) will offer 35 million ordinary shares of Tk 10 each with an indicative price of Tk 88. The company's existing paid-up capital is Tk 1.0 billion. The company's EPS and NAV are Tk 7.69 and Tk 10.35 respectively as of December 31, 2009.

According to AHL managing director Syed Yasser Rizvi, the company has stakes in 14 companies including Global Beverage, Summit Alliance Port Limited and Ocean Container Limited and it earned Tk 770 million profit in 2009.

The total size of the open-end Prime Finance First Unit Fund (PFFUF) is Tk 200 million. Of its total size, the fund will offload the units of Tk 170 million in the IPO. The remaining Tk 30 million will be contributed by the sponsors. The face value of the mutual fund's unit is Tk 100.

Prime Finance Asset Management is the issue manager of the PFFUF.

Another closed-end mutual fund--PHP First Mutual Fund--has got the SEC nod with tenure of 10 years. The total size of the fund is Tk 2.0 billion. The fund will offload the units of Tk 1.0 billion in the IPO, whereas the face value of the unit is Tk 10.

Of its total size, the sponsors will contribute Tk 200 million and the remaining Tk 800 million will come from pre-IPO placement.

Source: http://thefinancialexpress-bd.com