SEC approves IPO proposals of two cos

The Securities and Exchange Commission has approved the IPO proposals of two companies and the rights offers of two other companies.

The securities regulator has approved the IPO (initial public offering) proposal of Unique Hotel and Resort, which will set up three luxurious five star hotels in the capital with the fund raised through the company’s public offering.

It has also approved the IPO proposal of Barkotulla Electro Dynamite and two rights offers of Continental Insurance and Fu-Wang Foods Limited.

The approvals came at a Commission meeting Monday at the office of the Securities and Exchange Commission (SEC) with its Chairman Ziaul Haque Khondker in the chair.

SEC Executive Director Anwarul Kabir Bhuiyan disclosed this to newsmen after the meeting.

As per SEC nod, the Unique Hotel and Resort will offer 30 million shares of ten taka each under book building method. At the road-show the indicative price of the company’s shares has been estimated at Tk 185.

“Now the company will go for bidding on the indicative price. This larger amount of share supply will help the market stabilise,” SEC Executive Director ATM Tariquzzaman said.

The company will set up three luxury five-star hotels in the capital involving Tk 5.50 billion which will come from its public offering.

The hotels, which are planned to set up, are Westin-2, Lay Meridian and Luxury Collections.

As per the IPO proposal, the earning per share (EPS) of Hotel Unique is of Tk 4.8.

BRAC-EPL is working as the issue manager of the company.

Set up in 2007 at Gulshan, Hotel Unique has emerged as a leading five-star hotel in city. The hotel, managed by US chain hotels operator Starwood, has 241 rooms, six restaurants and five meeting venues.

Earlier, Beximco bought a significant stake of the Unique Hotel.

Under the fixed price method, the power company — Barkotulla Electro Dynamite — will offload 20 million ordinary shares at an offer price of Tk 60 each including a premium of Tk 50.

The company will set up a 51 MW power plant with the fund of Tk 1.20 billion, which will be collected through its public offering.

Prime Finance Limited is the issue manager of the company.

As per SEC approval, Continental Insurance will offer one rights share against two existing shares at an issue price of Tk 150, including a premium of Tk 50.

On the other hand, Fu-wang Foods Limited will offer one rights share against one existing share at an issue price of Tk 10, without taking any premium.

Source: The financial express, 29 December, 2010

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