Home ›› 04 Oct 2021 ›› Stock
The Bangladesh Securities and Exchange Commission (BSEC) has given its approval to BD Thai Food & Beverage’s planned initial public offering (IPO).
The approval came in a commission meeting on Sunday, according to a statement from the securities regulator.
Under the fixed price method, the company, a subsidiary of BD Thai Group, will raise Tk 15 crore by issuing 1.5 crore shares and the offer value is Tk 10.
Proceeds from the IPO will be used for loan repayment, purchase of new machinery and equipment, construction of the building, and bearing the IPO expenses.
The company’s net asset value (NAV) with revaluation per share stood at Tk 12.82 and NAV with revaluation of Tk 14.23 as per its audited financial statement ended on June 30, 2020. Its five-year weighted average earnings per share (EPS) was Tk 0.63.
The BSEC tagged a condition that the sponsors and directors of the food and beverage makers will not be able to take any dividend until its EPS reaches Tk 1 or above. In this case, the company will be allowed to allot 15 per cent of the share among its employees and these shares will be locked in for two years.
Unicap Investments Limited and BLI Capital Limited are jointly acting as the issue managers.
Incorporated in 2010, BD Thai Food products are mostly marketed under the brand name “Nectar”.
The company is engaged in the processing of different kinds of fruit juices, carbonated beverages, drinking water, hard candies, soft candies, Lollipops, Gums, etc.
The company is distributing marketing its products through 260 dealers across the country.
Currently, the company’s product mix includes different kinds of fruit juices, carbonated beverages, hard candies, soft candies, lollipops, gums, etc.
BD Thai Food is using the latest hi-tech machinery imported from UK, Germany, China, Korea and many other countries. The company’s factory is located at Dhaka’s Dhamrai.
BD Thai Aluminum and Sun Life Insurance Company are the subsidiaries of the Group. Both are listed on the stock exchanges.
At the commission meeting, the regulator also approved 15 percent share distribution among the employees of Union Bank and Union Insurance.
It has imposed a two-year lock-in of the shares allotted to the employees.
As per the existing rules, a three-year lock-in period on the shares of sponsors will remain unchanged.
Earlier, the commission approved Union Bank to raise Tk 428 crore through an initial public offering and Union Insurance to raise Tk19.36 crore with an IPO by issuing 1.93 crore ordinary shares.
