State-owned Gas Transmission Company Limited (GTCL) will raise Tk 400 crore through the direct listing method of the country’s two bourses as per a government decision to enlist its profit-making companies on the stock market.
GTCL managing director Md Atiquzzaman told New Age on Tuesday, ‘GTCL has recently signed an agreement with state-run Investment Corporation of Bangladesh to appoint the ICB as issue manager for the direct listing.’
He said that it took the listing initiative as per a government decision.
The company has decided to raise its paid up capital to Tk 4,000 crore from Tk 700 crore and the authorised capital to Tk 10,000 crore from Tk 1,000 crore, he said.
So, it will initially offload 10 per cent of its shares, or 40 crore shares, at Tk 10 each, Atiquzzaman said.
If floated, the size of paid up capital and floating shares of the company would be the second largest after Robi Axiata Limited on the stock exchanges.
The company will not take any premium for the shares, he said.
Atiquzzamman also said that the company would convert the share money deposit of the government investment into shares soon.
As per the securities rules, only government-owned company can apply for the direct listing on the stock exchanges.
The government has taken several initiatives since 2007 to enlist government-owned companies, including GTCL, on the stock market but was able to enlist only Bangladesh Submarine Cables Company in 2012.
On February 2, 2020, finance minister AHM Mustafa Kamal declared that the government instructed five energy companies, including GTCL, to go public immediately.
Meanwhile, the Financial Reporting Council on February 11, 2020 issued a notification, making it mandatory for companies to convert share money deposits into shares within six months.
Deposit against shares in GTCL was Tk 3,405.04 crore, as per the company’s financial statements in 2019-20.
Former interim government adviser and Bangladesh Securities and Exchange Commission chairman AB Mirza Azizul Islam told New Age that the government-owned companies which were making better profits should be enlisted on the stock exchanges.
The companies would enhance the depth of the market and investors would have good securities for investment, he said.
After a long time, a state-owned company took initiatives to get listed, which is obviously good news for the market, he said.
As per the financial statements of 2019-20, the net profit after tax of the company was Tk 178.44 crore.
There are 18 state-owned companies listed on the stock market.
GTCL was formed with the objective of establishing a balanced and reliable national gas transmission network with effective and unified control to ensure transportation of required gas for meeting the increasing gas demand in the country.
GTCL started its commercial business in March 1994.
Midway News Team
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