Regulator okays IPO prospectus of Argon Denims

The Securities and Exchange Commission yesterday approved initial public offering (IPO) prospectus of Argon Denims Ltd, which will raise Tk 132 crore from public.

The approval came at a meeting of the stockmarket regulator with its Chairman M Khairul Hossain in the chair.

Using a fixed-price method, Argon Denims will float three crore ordinary shares of Tk 10 each at an offer price of Tk 44, including a premium of Tk 34, the SEC said in a statement.

The company will use the IPO proceeds to repay its bank loans and use in project expansion.

The company’s earnings per share is Tk 5.46, according to its 2011 financial statements.

LankaBangla Investments Ltd is the issue manager of Argon Denims’ IPO.

Argon Denims, a subsidiary of Evince Group, will be the 26th company in the textile sector to be listed on the bourse.

The market regulator also decided to instruct the institutions concerned to implement the recommendations made by a government committee on compensating the retail investors who lost money to last year’s downswings.

Earlier, the committee singled out 9.33 lakh small investors who will get 20 percent IPO quota under the stock compensation package.

At yesterday’s meeting the stockmarket watchdog also fined issue manager, auditor and valuer of Apollo Ispat Complex Ltd for providing incorrect information in the IPO prospectus.

The SEC imposed Tk 1 lakh fine each on ICB Capital Management Ltd, the issue manager, and Ms Zoha Zaman Kabir Rashid and Co Ltd, the auditor, and Tk 2 lakh fine on Ms Mosih Muhit and Co, the valuer.

Source: The Daily Star, May 30, 2012