The securities regulator has approved the IPO (initial public offering) proposal of AFC Health which will raise capital worth Tk 170 million from the capital market.
The approval came at a meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC) on Wednesday.
At the meeting, the BSEC also fined NRB Equity Management of Tk 1.0 million for opening BO (beneficiary owner’s) accounts in breach of the securities rules.
As per the BSEC’s approval, AFC Health will offload 17 million shares of Tk 10 each under the fixed price method.
The company will utilise the IPO fund worth Tk 170 million to purchase machinaries and equipments along with bearing the IPO expense.
For the year ended on June 30, 2019 the company reported net asset value of Tk 13.13 per share without revaluation.
For the same period, the company’s earnings per share (EPS) stood at Tk 1.47, while the weighted average EPS stood at Tk 0.84.
Imperial Capital and CAPM Advisory are working as issue managers of AFC Heath.
According to IPO prospectus, AFC Health is equipped with ultra-modern medical technologies, which brings a breakthrough in health services such as interventional Catheterisation, coronary angioplasty, renal angioplasty, device closures, and pace maker implantation.
The company provides cardiology, cardiothoracic surgery, dialysis, psychiatrist, dietetics & nutrition, pharmacy and ambulance services.
The company has three hospitals in Khulna, Chittagong and Comilla.
The securities regulator has fined NRB Equity Management as it opened 246 BO accounts without identifying the information of clients.
According to BSEC’s information, NRB Equity Management also opened 305 accounts against one BO account despite the firm was supposed to open separate BO accounts against the omnibus account.
Besides, the firm has breached the securities rules in case of applying for IPO shares using the clients’ accounts.
“The securities regulator has also found the proof of opening BO account illegally by a client namely Md. Sabuj Hawlader. The account was opened in assassination with some corrupt officials of the firm,” said the BSEC, adding that the firm filed a case against Md. Sabuj Hawlader.
According to BSEC’s decision, NRB Equity Management will have to pay penalty worth Tk 1.0 million within 30 days from the date of issuing the regulatory order.
“Otherwise, the securities regulator will legal action including postponing or canceling the license of NRB Equity Management on failure of paying the penalty,” according to BSEC.
At Wednesday’s meeting, the securities regulator also warned three other companies for breaching the securities rules.