BSEC approves IPO of Shepherd Industries

The securities` regulator Tuesday approved the IPO (initial public offering) proposal of Shepherd Industries which will raise a fund worth Tk 200 million under fixed price method, officials said.

The regulator has also approved the proposal of Tk 3.0 billion non-convertible coupon bearing subordinate bond to be issued by Jamuna Bank.

The approvals came at a commission meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).

As per the BSEC approval, Shepherd Industries will offload 20 million shares at the face value of Tk 10 each for raising a fund worth Tk 200 million. The fund will be utilised for the purpose of expanding and constructing washing plant and ETP and purchasing machineries along with repayment of bank loans.

As per the financial statement for the year ended on June 30, 2016 the company`s net asset value (NAV) is Tk 18.70. The weighted average earnings per share (EPS) based on financial statements of five years has stood at Tk 1.44.

According to company`s official website, the Shepherd Industries was established in 2000 in Bangladesh.

"With nearly 20 years of sweater yarn dye and garment wash experience and innovation, we have received a reputable name in this industry in Bangladesh," the company said.

The company`s main products include various types of cotton yarn, Acrylic Cotton, Acrylic, Acrylic Wool, Acrylic Nylon, Piece Dyeing, Garments Wash, 100 per cent Nylon and Acrylic Viscose blended yarn.

Alpha Capital Management is working as issue manager of Shepherd Industries.

Jamuna Bank will issue Tk 3.0 billion non-convertible coupon bearing subordinate bond with a tenure of seven years. The bond will be issued to financial institutions and high net individuals through private placements. The Jamuna Bank will raise fund to fulfill the condition of Tier-II. The face value of each unit of the bond will be Tk 1.0 million.

RSA Capital and IDLC Finance are working as mandated lead arranger and Trustee for Jamuna Bank`s bond offer respectively.

At Tuesday`s meeting, the securities regulator has also decided to impose a penalty of Tk 0.2 million on Super Shares and Securities for breaching securities rules.