BSEC approves Royal Tulip IPO

Bangladesh Securities and Exchange Commission (BSEC) has approved the initial public offering (IPO) prospectus of Sea Pearl Beach Resort and Spa Ltd (owners of Hotel Royal Tulip Sea Pearl Beach Resort in Cox's Bazar), aimed at raising Tk15 crore. 

Stock market regulator BSEC approved the IPO at a commission meeting held in Dhaka on Tuesday.

BSEC Chairman M Khairul Hossain presided over the meeting, according to a press release.

As per the BSEC approval—under the fixed price method—Sea Pearl Beach Resort will offload 15 million ordinary shares for Tk10 each. 

According to the financial statement ended on June 30, 2018, the company's net asset value (NAV) per share stood at Tk10.48, while the weighted average of earnings per share (EPS) was Tk0.41. 

Banco Finance and Investment Limited and Prime Bank Investment Limited will act as the issue manager for the IPO process.

Also at Tuesday’s meeting, the BSEC approved Exim Bank Limited to issue a fully redeemable non-convertible mudaraba subordinated bond worth Tk600 crore.

The purpose of the issue is to strengthen the capital base (Tier 2) of the company. The tenure of the Exim Bank bonds will be seven years. Per unit price of the bond will be Tk1 crore.

The units will be sold to banks, financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds, and high net-worth individuals through private placements.

Green Delta Insurance Company Limited will act as the trustee and Standard Chartered Bank Limited will arrange the bond.