The regulations prohibit a paid-in capital increase within the period that a company is applying for an IPO
May 27, 2023 at 10:20 p.m
Last modified: May 27, 2023, 10:25 p.m
Lankan Alliance Finance Limited
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Lankan Alliance Finance Limited
The Securities and Exchange Commission has urged Lankan Alliance Finance Limited to resubmit its initial public offering (IPO) application as the company increased the number of shares by issuing stock dividends following the recent IPO application.
The New Generation Non-bank Financial Institution (NBFI) applied to raise Tk30 crore from the public through a fixed-price IPO in April this year to comply with central bank regulatory requirements.
The Bangladesh Securities and Exchange Commission (BSEC) has requested a resubmission with updated accounts, BSEC Executive Director Rezaul Karim said.
IPO issuance rules prohibit a paid-in capital increase within the period that a company applies for and completes an IPO, he added.
According to its CEO Kanti Kumar Saha, Lankan Alliance Finance paid 5% cash dividends while issuing 5% stock dividends in 2022.
“We plan to resubmit the application with updated accounts,” he added.
Lankan Alliance Finance Limited is a multinational cooperation joint venture financial institution in Bangladesh licensed by Bangladesh Bank.
Lankan Alliance Finance’s majority shareholder is People’s Leasing Company (PLC), a subsidiary of Peoples’ Bank, Sri Lanka’s largest state-owned bank.
Local sponsors include representatives from companies such as Summit Group, Rangs Group, Alliance Holdings Limited, Green Delta Insurance Company Limited and Concept Knitting.
The company was incorporated in 2003 as Alliance Leasing & Finance Company Limited and changed its name to Lankan Alliance Finance Limited in 2018 after receiving a business license from Bangladesh Bank in the same year.
At an Extraordinary General Meeting on December 28 last year, the company changed its name again to Alliance Finance PLC and the name change process is still ongoing, according to the CEO.
The company’s loans and advances grew to over Tk314 billion by the end of 2022, up from Tk108 billion in 2018, with a very low NPL ratio of just 0.24%.
Over the period, net profit after tax increased from Tk 2.97 crore to Tk 5.18 crore.
Taking into account the paid-up capital of Tk 100 crore before the share distribution, earnings per share for 2022 amounted to Tk 0.52.
At the end of 2022, the net asset value per share was Tk 12.75 with a nominal value of Tk 10 per share.
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