BSEC exempts Pertex Cables from rules

The securities regulator Bangladesh Securities and Exchange Commission (BSEC) has exempted Pertex Cables Limited, a sister concern of Partex Star Group, from complying with the public issue rules for raising fund through an initial public offering (IPO).

The stock market regulator enabled Partex Cables to apply for an IPO by approving its paid-up capital that was raised through cash in a period of over two years.

According to the Public Issue Rules 2015, a company cannot apply for IPO if it rises paid-up through cash. But the BSEC gave Partex Cables an exemption from this obligation, and now, the company can apply for IPO.

Partex Cables encompasses a wide manufacturing line ranging from building wire, low voltage cables, medium voltage cables, high voltage cables, fire survival cables, communication cables, instrumentation cables, overhead conductors and other customized cables.

Its line-up of manufacturing is set to further expand to rubber cables, optical fiber cables and super enameled winding wire.

As part of this plan, the company wants to get listed on the stock market to enable foreign investors to evaluate its performance before making their investments.

Partex Cables, a leading manufacturer in the cable industry, plans to raise Tk 30 crore in the fixed price method by issuing 3 crore shares at face value.

The company, established in 2016, wants to utilise the IPO fund for uplifting its working capital and BMRE. The cable maker achieved revenues worth Tk 300 crore in the last fiscal year.

CBC Capital and Equity Management Limited will act as the collaborative investor of the company. The firm has already signed an agreement with AAA Finance and Investment Ltd for processing the issue.