Bangladesh: BSEC rejects IFIC Bank’s time extension plea on rights offer

Dhaka, June 27 (New Age): The Bangladesh Securities and Exchange Commission has rejected the time extension application of IFIC Bank for submitting rights offer documents to the commission after getting shareholders’ approval, a Dhaka Stock Exchange web post said on Thursday.
As per the rule 7(1) of the Securities and Exchange Commission (Rights Issue) Rules 2006, companies have to file offer documents of rights shares to the commission within 15 working days after getting shareholders’ approval in a general meeting.
The BSEC rejected IFIC Bank’s application as it has failed to comply with the rule.
A BSEC senior official told New Age on Thursday, ‘As the commission denied to extend time for filing offer
documents of rights shares, there is no chance for the bank to file the documents this time and get approval from the commission to the rights offer as well.’
‘The rights offer of IFIC Bank may be considered in the next time if the company files offer documents to the commission within 15 working days after getting shareholders’ approval in general meeting and comply with other rules related in this regard,’ he said.
The board of directors of the bank on April 27 decided to issue one rights share against its existing one share at an issue price of Tk 20 including premium of Tk 10 each share to meet the future capital requirement of the bank.
The board at the meeting also decided to hold annual general meeting on June 1 in this regard.
The paid-up capital of IFIC Bank is Tk 437.70 crore with earning per share and net asset value of Tk 3.60 and Tk 24.29 respectively.
The shares of the company traded at Tk 23.7 on Thursday.