Janata Bank submits prospectus to SEC

Janata Bank submitted its prospectus to the Securities and Exchange Commission (SEC) Sunday, Janata’s issue manager said.

Janata Bank, subject to the approval of SEC, will offer 10 million shares of Tk 100 each for subscription under its IPO placement in the stock market which is 16.28 percent of the pre-IPO paid-up capital worth Tk 4.84 billion.

The ministry of finance last month decided that the companies intending to raise capital by offloading shares must go for IPO with shares equivalent to atleast 40 per cent of the paid-up capital.

But this decision has not been incorporated in the SEC regulation yet.

"We submitted our prospectus according to the government plan and after obtaining approval of finance ministry. The SEC has the authority to approve or reject our prospectus," Belal Hossain, a senior consultant of Janata Bank told the FE.

"The commission will decide which regulation will be applicable for the approval of IPO submitted by Janata Bank," an official of the SEC told FE.

Janata Bank, subject to the approval of SEC will raise Tk 10 billion by offloading the 10 million shares with a face value of Tk 100 each. The offer price of a share will be Tk 1,000 including a premium of Tk 900, subject to the approval of SEC.