Garment exports to Japan double

Japan proves to be a lucrative garment export destination for Bangladesh as RMG shipments to the Asian giant have more than doubled in fiscal 2008-09 from a year ago.

Bangladesh exported ready-made garments worth $74.381 million in fiscal 2008-09, compared to $28.035 million in fiscal 2007-08, according to Export Promotion Bureau (EPB) data.

Japan has reduced its dependence on imports from China, which gave a boost to RMG exports out of Bangladesh, said manufacturers and exporters.

Recently, the Japanese government has advised entrepreneurs to divert investment to diverse countries.

Knitwear accounted for $21.986 million of total apparel exports in fiscal 2008-09, up from $7.234 million a year earlier. Woven garment exports rose to $52.395 million in fiscal 2008-09 from $20.801 million in the previous year, the EPB data said.

“We are optimistic that Japan will increase purchases from Bangladesh as the country reduced its dependence on China,” said BKMEA President Fazlul Hoque, who led a high-powered delegation to Japan in July, in search of more orders.

“Moreover, Japan is a ready market for us, as we produce high-quality products, which is a major criteria to get in,” he said.

Hoque said the trend shows Bangladesh will be able to export apparel items worth a billion dollars in the next five years.

Uniqlo, one of the largest retail chains in Japan, started investing in Bangladesh, to purchase garment items. “The company is planning to invest $100 million initially,” said Hoque.

Japan, being the second largest economy in the world with a $4.348 trillion GDP, is the fourth largest knitwear importer in the world. It imports knitwear items worth $11 billion and woven goods worth $12 billion a year.

Exporters said Japan bought garments worth $20 billion, or 84 percent of its total global purchase, from China in 2008.

The second largest exporter of garment items to Japan is Italy, with a 2.87 percent market share. While Bangladesh’s market share in the Japanese apparel market is near 1 percent, the BKMEA findings said.

In recent years, Japan’s knitwear imports from Korea, Italy and the US have dropped, while imports from Thailand, Vietnam, India, Cambodia and Bangladesh have risen, the BKMEA survey said.

Manmade fibre sweaters, pullovers and cardigans are the top import items, while cotton T-shirts and knitted shirts for both men and women are also quite popular in Japan, BKMEA data showed.

Under the worldwide movement of “China+1”, which promotes shifting the production point from China, it is indeed a great decision to choose Bangladesh as a new production point, said Japanese Ambassador to Bangladesh Masayuki Inoue.

The envoy was speaking at the launch of Matsuoka Apparels at The Westin Hotel Dhaka on March 22, 2008.

Former BGMEA President Anwar-Ul-Alam Chowdhury Parvez said Japanese customers are relatively permanent customers. “We should handle with them with care, as they rely on quality,” Parvez said.

He said manufacturers should develop some separate product lines in their factories for the Japanese customers, as they never compromise on quality.

On the other hand, Japanese buyers should pay more for the high quality goods, the former BGMEA boss said.

The emergence of lounge music in Dhaka

Music has become manifold over the recent years in Bangladesh. For a country still developing, still emerging out of its debris of poverty and corruption — art and culture is thriving in Dhaka, Chittagong and other urban locations. It’s quite a trend now to turn on the TV to get some ‘Bollywood Masala’ or to download some hits of the Billboard chart for the urbanities. But does that mean that our national flavours have taken a back seat? No way. And there is more to national flavours than just folk music. Jazz, rock, pop, fusion and all that are now found in the music scene. In this aspect, lounge music plays an important role in bringing Bangladeshi music nearer to urban Bangladeshi audience. Recently, The Daily Star spoke to one of the pioneers of lounge music, Nafis Tahsin Ahmed Shubho, who is the founder and managing director of Wireless.

“Wireless — well, the brand suggests it all! It’s basically a chance to bring the crowd closer to live music,” said Nafis.

“Of course there are many ‘official’ or high paid entry parties where one can get a taste of live music, but the chances of a student paying around Tk1000 to go for such music or entertainment is quite slim. Not that it does not happen, but this habit should be three-four times a week, and not three-four times a year. You see, we are really creating a subtle gap from the propagation of our own music. The very idea behind Wireless was to bridge that gap,” he added.

The first Wireless Session was held on July 2007 at Decagon, Dhanmondi. There were all the big names like Arnob, Arbovirus, Black, et al and there were various artists who begin their journey in the music world from the show at Wireless.

“After the first hit, Wireless got frequent. The charm here was that it was the same Arnob, with the same guitar but the charm was “Here is the man. All by himself. Unplugged! The same goes with all the other artistes. Everybody liked the feel of it, and they called for more! A bit of soft, and a bit of blues. Of course heavy metal and alternative like Radio Active and Black were also there, but the sensations were completely different when the rock bands went ‘wireless’,” Nafis said.

“The target groups were the students, say from 15 to 25, and the young professionals at corporate levels. We started with a small scale…kept the entry fee really easy and manageable and it did the trick. Bengali music had attained a sound and swift platform to shine out and come out of the personal computers and stereos. The first Wireless was a landmark. Here, there was no need of jamming. They all loved it because it was a single ground, all surrounding their favourite musician, just with in their reach. The ambience was affable and casual — lounging you can say with the listeners all sprawled on the mats. Well, where other do you get moments like this?” he continued.

The recent sessions of Wireless continued all throughout the Thursdays of July. So what does Nafis have to say about them?

“The response was simply amazing,” he said to RJ Rono on the show “Nightrider,” Radio Foorti on the last day of the session. Ajob, Arbovirus, Western Milon, German Town, Black, Nemesis, Sever Dementia, Kral, OldSchool, Mechanix, Radio Active, Power surge, Bohemian, Yaatri, Bassbaba Sumon, Arnob, Shunno, Reborn, Stentorian, et al are just some of the names. Also from outside Dhaka some bands were introduced like AOD, Blunderware, Tanshi (solo). Oblique’s new album EP Ojothai was released on July 31 at Wireless.

So what’s the next plan for Wireless? Its going to reach out to more people out of the boundaries of Dhanmondi and even Dhaka, so that more and more people have the opportunity to get introduced to and involved in the exquisite music of Bangladesh.SAS was the Sound Sponsor and Amader Gaan.com was the Web partner of the sessions. The organisers also thank Incursion Music for being a part of it.

Rajshahi investors find new refuge in stocks

Share trading is gaining popularity in Rajshahi as more people are now investing in stocks.

State-owned Investment Corporation of Bangladesh (ICB) and its subsidiaries, which are providing brokerage services with an aim to help small investors, are now struggling to cope with pressure from a rising number of investors.

Beginning in 1984, ICB roped in around 7,000 investors from northern districts until 2005. Then there was a big jump.

The number of investors increased by 4,600 in only four years to 11,600 after ICB Securities Trading Company Ltd (STCL) and ICB Capital Management Ltd (CML) opened up IT-enabled brokerage services.

The services enabled investors in Rajshahi and its surrounding areas to get direct access and trade on the Dhaka Stock Exchange and Chittagong Stock Exchange (CSE) through internet trading service modules.

Investors — mostly small and from remote areas — transacted Tk 108 crore in turnover in the last one and a half month, said Mahmud Mizanur Rahman, deputy general manager of ICB in Rajshahi.

“At least 25 new investors are opening up new accounts daily with ICB, STCL and CML. The average daily turnover in Rajshahi was recorded at Tk 4 crore,” said the regional ICB chief.

However, many investors complained that although ICB and its subsidiaries are drawing handsome commissions, they are not increasing manpower, facilities or support for the investors.

Investors have to cram in front of a display terminal in a small room at the ICB branch office. Often they demonstrate inside the ICB itself and burst into protest by forcing their way into the DGM’s office.

“A single display terminal for so many investors seriously hampers our access to information on share prices,” said M Tozammel Hossain, an investor.

He added only two computers are being used for the internet module to trade on the DSE, while there is only one computer to trade on the CSE.

The computers and internet services often do not function properly due to the pressures of increased trade, but the ICB is yet to develop infrastructure, investors complain.

“We have to risk financial losses as we are not able to trade timely. Only one computer is being used for both purchase and sale orders, delaying the entire process,” said Abdullah Al Hussain, demanding separate trading terminals.

Mir Akhtarul Islam Mitul, another investor, said ICB, STCL and CML are selective in providing loans. “Big investors are the preferred group,” he alleged.

In the face of growing demand, ICB initiated a Tk 50 lakh project to open a new 1,200 square feet terminal on the fifth floor of Gaffar Plaza, said Mahmud Mizanur Rahman of ICB. The current office is on the first floor of the same building.

“Two more display terminals and a larger space has been arranged on the new floor,” said the DGM. “The project is to be completed in months and will create a better environment.”

M Shahabuddin Bhuiyan, manager of ICB’s Capital Management Ltd, said the increased number of investors is creating extra pressure on the computer servers.

“Despite a fund crunch, we are setting up another server within a few weeks.”

Abdul Mottalib, branch in charge of ICB’s Securities Trading Company, denied allegations over giving selective loans. He said loans worth around Tk 33 crore were given to the investors.

ICB is running with only 10 staffers, while CML has five. Investors said the number of employees is not enough.

T-shirts drive exports to Germany

Bangladesh’s share in the German apparels market is widening rapidly due to high demand for local T-shirts, industry leaders say.

In 2008, Bangladesh ranked third in the export of T-shirts to Germany, following the intra-EU 27 nations and Turkey, according to data from the Export Promotion Bureau (EPB) and research carried out by the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

Bangladesh’s position in the export of T-shirts to Germany may remain the same in fiscal 2009-10. In fiscal 2008-09, Bangladesh exported knitwear worth $1.34 billion and woven garments worth $802 million to the European country.

Local exporters are expected to see brighter days ahead as Germany has escaped the clutches of its worst recession in over 60 years. Latest official data showed that consumption helped Europe’s biggest economy grow by 0.3 percent in the second quarter.

The positive growth figures are the latest in a series of economic data that suggests Germany might bounce back relatively quickly from a deep and painful recession.

A Matin Chowdhury, managing director of Malek Spinning Mills Ltd, said one of his companies, Knit Asia, exported knitwear products worth $40 million to the EU, mainly Germany, last year.

“Germany is the single largest export destination for Bangladeshi apparels items after the US,” Chowdhury said. “However, all potential to grow exports would remain unutilised if the supply of gas cannot be ensured.”

Dragon Group Managing Director Mostafa Q Sobhan said he exported sweaters worth $15 million to Germany last year. “The German economy is growing at a good rate and so our potential to shine in that country is also bright.”

In fiscal 2008, the value of total imports of T-shirts to Germany was 1.69 billion euros, 2.29 billion euros for sweaters with a 22.54 percent market share, 1.3 billion euros for denim with an 11.76 percent share, while trousers have a 17.26 percent market share.

Bangladesh’s share of global T-shirt exports to Germany was 18.47 percent in 2008, up from 15.33 percent in 2007. China’s share was 10.55 percent in 2008 and 8.66 percent in 2007

India had a 7.33 percent share in 2008, down from 7.85 percent in 2007, and Turkey’s share was 24.06 percent in 2008 and 26.36 percent in 2007.

The other major knitwear export items from Bangladesh are socks, tights and pantyhose, cotton garments for babies, blouses, stockings and cotton trousers and sweaters.

In 2008, Germany imported knitwear items worth $14.31 billion and woven garments worth $16.91 billion, while total imports were worth $1.53 trillion and exports were $1.2 trillion.

The top-10 knitwear import items in Germany constitute 60.89 percent of market share. Among the products, cotton T-shirts take the lead, while demand for items made out of manmade fiber is gradually falling.

In the export of woven garments to Germany in 2008, intra-EU nations lost 9 percent, China gained 16 percent, Turkey lost 3 percent, Bangladesh gained 1 percent and India gained 1 percent.

China offers $1b for 5 projects

China at a state-level meeting has primarily expressed its interest to finance five projects involving more than $1 billion as Bangladesh sought $5.14 billion assistance for 28 projects.

China also offers its assistance in a mix of buyer’s credit and concessional loans, which have hard terms, against Bangladesh’s request for soft loans.

Since 1975, China has given Bangladesh $1.5 billion finance, of which $978 million had been hard type loans.

The country also said in future Bangladesh should submit feasibility study reports to it for all its proposed projects, and then China would have its own feasibility study before deciding which schemes to finance.

China also expressed its unhappiness about Bangladesh’s poor project implementation under Chinese fund.

The Chinese side also said the contractors for the projects to be assisted by China have to be selected from China which is an internationally accepted process.

China conveyed these suggestions earlier this month following a meeting of the Bangladesh-China Joint Economic Commission (JEC) held in Beijing on July 28.

Economic Relations Division (ERD) Secretary Mosharraf Hossain Bhuiyan headed a nine-member Bangladesh team at the meeting, while Vice-minister Chen Jian led a nine-member Chinese delegation. The last JEC meeting was held in Dhaka in May 2005.

Bangladesh team sources say China primarily expressed its interest in the projects of Seventh Bangladesh-China Friendship Bridge on the Arial Khan river in Kazirtek, Madaripur, Bangladesh-China Friendship Exhibition Centre, Shahjalal Fertiliser Factory, digital telecommunications networks at the metropolises and Pagla-Keraniganj Water Treatment Plant.

Mosharraf Hossain Bhuiyan told The Daily Star the JEC meeting has been successful, but its final success would depend on active implementation of the meeting decisions.

He said ERD in this regard has already started discussions with the ministries concerned.

Mosharraf added, “We requested the Chinese government to give soft loans instead of suppliers of buyers credit. If soft loan is available, approval and implementation of the project become easy. The approval process of suppliers or buyers credit is very complex.”

The ERD secretary quoting the Chinese vice-minister said, “The Chinese government requested the Bangladesh side to prioritise the projects and inform them.”

“However, the Chinese minister said the projects which were already being discussed may be considered on priority basis,” he added.

The Chinese state bank the Export Import Bank of China last week also relayed the terms and conditions to Bangladesh.

Both sides signed an Agreed Minutes on Bangladesh’s proposal on the projects and other issues.

Sources say the Chinese side agreed to conduct a feasibility study on the construction of Kazirtek Bridge which was confirmed by the signing of a Letter of Exchange on July 28.

The Chinese side would send an investigation team to Bangladesh for the project.

On the Bangladesh-China Friendship Exhibition Centre, the Bangladesh delegation accepted that due to the strict restriction on height, the net height for nearly 50 percent of the indoor space will be lower than 12 metres. The Chinese side also agreed to make a new design of the project.

The Import and Export Bank of China will send an expert team to re-evaluate Shahjalal Fertiliser Plant and report review conclusion to the Ministry of Commerce of China.

In September 2006 the Import and Export Bank of China and the Ministry of Finance of Bangladesh signed a general loan agreement on a preferential buyer’s credit worth $211 million as part of preferential buyer’s credit worth $400 million provided by the Chinese side and the agreement expired in August 2008.

The Bangladesh side proposed to provide the proposed loan to the “Introduction of 3G and Expansion of 2.5G Network” project instead of “Installation of Digital Telephone Exchanges in Metropolitan cities and Important District Headquarters and Upazila Growth Centres” and to provide soft loan for the project.

The Chinese side noticed the request of the Bangladesh side.

Sources say at the JEC meeting the Chinese side expressed dissatisfaction saying in the past changes have been made several times in selecting project and implementation in Bangladesh. Indonesia, on the other hand, started project implementation at the same time and completed implementation of all China-aided projects, but Bangladesh could make almost no progress.

The sources say at the meeting they also said Chinese grant would not meet Bangladesh’s emergency needs. In this regard the Chinese government has its own limitations. In case of getting assistance of big amount Bangladesh would have to take loans from the Chinese banks.

They also told the meeting the feasibility study of the project for which Bangladesh sought assistance should first be done by Bangladesh. If the result of the study is positive then Chinese authorities may conduct their study.

They also said what kind of grant China would give to commercial projects depends mostly on the profitability of the projects.

The deficit against Bangladesh is the highest in China-Bangladesh trade. China has already given Bangladesh duty free market access for 84 commodities, but in reality there is no demand for these items in the Chinese market.

For this, at the JEC meeting Bangladesh sought duty free access for another 34 commodities in the Chinese market. China has not given any specific assurance in this regard but said it would consider the matter.

China has offered incentives like free booth to participating exhibitors from Bangladesh in the South Asian Countries Commodity Fair in Kunming by the end of this year.

The ERD high officials say they would write a fresh letter to the Chinese government requesting to inform how much assistance Chinese government is willing to give for the 28 projects and what are the terms and conditions.

After knowing how much assistance would be available the Bangladesh government would try to collect the gap in required fund from other sources.

Bangladesh was seeking Chinese assistance in introducing 3G telecom network and expansion of 2.5G network at an estimated cost of $211 million, construction of the second Padma bridge at an estimated cost of $579.21 million, Pagla/Keraniganj Water Treatment Plant at a cost of $267 million, North Dhaka (East) Sewerage Treatment Plant and associated sewerage system at a cost of $121 million and the second Meghna bridge on Dhaka-Chittagong Highway at an estimated cost of $125.36 million.

Dhaka will formally request Beijing to provide $1.4 billion to implement the Ganges Barrage Project and $88.12 million for restoration of the flow of the Buriganga river and for a project for prevention of river pollution, says the list of projects to be discussed at the talks.

Earlier, Bangladesh requested China to provide $560 million for implementing the North-West Fertiliser Company Limited project.

China however proposed a mixed credit scheme for the project, to which Bangladesh responded by urging China in June this year to provide the assistance for Shahjalal Fertiliser Company in Fenchuganj instead.

At the talks in Beijing, once again Bangladesh will request for a financial assistance of $600 million for the much-awaited Rooppur Nuclear Power Project. In February 2007, ERD sought the assistance from China, but a response is yet to come.

The national ICT infrastructure network for the Bangladesh government phase-2 at an estimated cost of $130 million, construction of a single line metre gauge railway track from Dohazari to Cox’s Bazar through Ramu, and from Ramu to Gundum at an estimated cost of $210 million, a railway bridge with provision of dual gauge double track over the Jamuna river at an estimated cost of $172 million, Karnaphuli tunnel at an estimated cost of $289 million, and construction of Barapukuria 125 megawatt coal-fired thermal power station at a cost of 47.4 million are the other projects expected to be discussed.

S: The Daily Star

Bangladeshi Pharma industry set for expansion

Leading pharmaceutical companies are set to expand operations to meet local demand that industry insiders expect to double by 2015.

Eight in top 10 revenue earners of 2008 have laid out plans to increase production capacities. Industry leaders said greater public health awareness and investments boosted the sector, setting a new benchmark for turnover every year.

“Demand for pharmaceutical products in the domestic market is fast rising and this prompted us to go for expansion,” said Mizanur Rahman Sinha, managing director of Acme Laboratories Ltd. “I believe the local market for pharmaceuticals will double by 2015.”

“At the same time, we have to meet the Current Good Manufacturing Practices (CGMP) criteria, set by the World Health Organisation (WHO). With our present infrastructure, it is not possible to ensure international standards of compliance. So, we are going to set up a bigger and better factory to meet requirements,” he added.

Pharmaceutical and biotech firms have to follow the CGMP to ensure that products meet specific requirements for identity, strength, quality and purity.

According to the US Food and Drug Administration, the CGMP must be rigorously applied as products move forward in development.

Acme began work on its new Tk 215 crore manufacturing unit in 2008. Of the total funds, Tk 130 crore will come in the form of a syndicated loan, with Standard Chartered Bank as the lead arranger.

“We have already completed 60 percent of the work and we hope to begin operations by June 2010,” Sinha told The Daily Star.

Located in Dhamrai, Acme Specialised Pharmaceuticals Ltd will produce anti-cancer and anti-AIDS drugs, the market for which is now almost fully dependent on imports, in addition to other drugs.

A few local companies are now making cancer-resistant drugs at a time when cancer patients are on the rise in Bangladesh, according to industry people.

“This new unit will help enhance supply to both local and international markets by more than 20 percent from the first year of production,” said the Acme boss.

In fiscal 2008-09, Acme Laboratories, a leading medicine maker, recorded domestic sales worth Tk 400 crore, while it posted $1.2 million in exports.

Square Pharmaceuticals Ltd, a company with a 20 percent market share, is also undertaking massive expansion plans.

Ahmed Kamrul Alam, assistant general manager of Square Pharmaceuticals Ltd, said the main reason behind expansion is to gradually meet increasing local demand.

“In the past decades, health consciousness rose manifold, which also increased family expenditure on health care,” he said. “At the same time, an access to high-quality medicines widened for ordinary people.”

“In addition, we are expanding operations as our exports have grown.”

Square started work early this year on its Tk 500 crore manufacturing unit in Kaliakoir, just north of Dhaka. The first phase of construction will end by 2012. From then on, it will be able to increase output.

“We hope to complete the first phase of work by 2012. The complete expansion project would end by 2016,” said Alam. “We are to manufacture anti-cancer drugs and other pharmaceutical products in the new factory.”

Advanced Chemical Industries Ltd (ACI) is also to join the race to expand operations.

M Mohibuz Zaman, chief operating officer of ACI, said expansion was essential for the company to meet the CGMP.

The new factory worth around Tk 60 crore in Narayanganj is expected to start off by 2010. The annual turnover of the company was Tk 736.5 crore in 2008.

“The new factory would produce medicine solely for the domestic market,” said Zaman.

Eskayef Bangladesh Ltd, a leading pharmaceutical company in the country, completed work on its new factory.

“We completed work on our new plant that was commissioned by the Medicines and Healthcare Products Regulatory Agency (MHRA) of UK in August 2008,” said AM Faruque, managing director of Eskayef. “The company ensures a ’state-of-the-art’ facility for its manufacturing unit.”

Eskayef is the third company to obtain the MHRA certification, after Square Pharma and Renata.

Faruque, who believes the market will grow by nearly 15 percent in 2009, said sales reached $60 million in 2008 and the company plans to raise exports to $5 million in 2009 from $3 million a year ago. Eskayef has been growing at a rate of 30 percent for years.

The market size of the pharmaceutical industry currently stands at Tk 20,000 crore, said industry insiders. There are 250 small, medium and large local and multinational pharmaceutical companies operating in Bangladesh.

According to Intercontinental Marketing Services (IMS), a global pharmaceutical market intelligence agency, Eskayef, Renata, ACI and Drug International posted the best growth results among the top 10 companies in Bangladesh in 2008, while Square, Beximco, Incepta, Acme, Aristopharma, and Sanofi Aventis are other players that performed well.

Of the 250 companies, the top 10 — Square, Beximco, Eskayef, Incepta, Acme, ACI, Opsonin, Renata, Aristopharma and Drug International — take up nearly 70 percent of the total market, according to the IMS 2008 survey.

S: The Daily Star

Trust Bank (Bangladesh) to offer farm, SME loans at 10pc

Trust Bank Limited, the country’s only army-owned bank, will provide loans for the agricultural sector and small-and-medium enterprises at a rate of ten per cent interest per annum, an official of the bank said Wednesday.
Iqbal U Ahmed, managing director of Trust Bank, was speaking after signing an agreement between the bank and financial services and communications company Western Union that aims to speed the process of remitting money to the country.
‘We have decided to disburse loans in the agricultural and SME sectors at ten per cent interest in response to a call from the Bangladesh Bank,’ Ahmed said at the Westin Hotel.
‘We will also give loans to women entrepreneurs at a nine per cent interest rate,’ said Ahmed.
He said the loans would be distributed from 40 branches of the Trust Bank was well as five special SME centres under the bank.
Bangladesh Bank governor Atiur Rahman, the chief guest at the programme, thanked Trust Bank for their initiative and called on the government and private banks to provide loans at the same rate.
‘Seventy-per cent of our freedom fighters were farmers. So we should do something for farmers and the agricultural sector as a whole in return for their sacrifices,’ said Rahman.
He said although corporate tax in the financial sector had been cut in the last budget, banks were still not reducing their lending rates.
‘This is despite the banks saying they would reduce the lending rate if corporate tax was reduced,’ said Rahman.
The central bank chief said the agricultural sector and remittances from expatriate workers were two of the largest contributors to the economy, adding that Bangladesh had remained relatively unscathed from the global downturn as a result of their input.
‘Although most other countries have suffered from the recession; bumper agricultural production and increasing remittance inflows have mainly guarded our economy from the worst affects of the recession,’ said Rahman.
He said Bangladesh could be a model country in the way it had faced the impact of the recession.
‘Seventy-per cent of migrant workers in the middle-east send remittances back to the country; they also send dollars to the country. They are the real patriots, and most of them are the sons of farmers,’ he said.
S: New Age

GP IPO likely after Eid

Subscription of a Tk 486.08-crore initial public offering of the Grameenphone Ltd is likely to begin after Eid-ul-Fitr, said a senior official of the Securities and Exchange Commission.
‘It is a large issue; so the company will need to consider market situation in fixing its IPO subscription schedule,’ SEC executive director Anwarul Kabir Bhuiyan told reporters on Thursday after SEC’s final approval to the IPO.
The stock market regulator gave its final nod to the private telecom company’s application in its commission meeting, said the official.
Earlier, on July 2 Grameenphone received an initial approval from the SEC for floating its IPO on condition that it would submit audited report upto December 31, 2008 and a projection report before getting a final approval.
The face value of the shares of the company is Tk 10 each and the offer price is Tk 70 with a premium of Tk 60.
The company’s pre-IPO size is Tk 486.07 crore, each of which is priced at Tk 10 in face value, with an additional Tk 64 in premium.
Through the IPO, Grameenphone will float 5.14 per cent of its total paid-up capital and through the pre-IPO 4.86 per cent of its total paid-up capital, said Anwarul.
He said, ‘This biggest issue will help bring depth into the market.’
Grameenphone submitted its final IPO prospectus on January 28.
An air of uncertainty had loomed over the fate of Grameenphone’s IPO as the stock market regulator seemed unwilling to approve the IPO prospectus of the country’s largest mobile operator.
The uncertainty became more evident from a decision of not listing any share with face value of Tk 1 by the Dhaka Stock Exchange, as Grameenphone’s $60 million pre-IPO was settled with a value of Tk 7.50 per share, while the face value was fixed at Tk 1.
Later, the SEC decided that no company with face value under Tk 10 each share would be allowed to float IPO.
Grameenphone had to revise its IPO application in line with the SEC decision.

S: New Age

Subedar gets state honour six months after death

Subedar Major Nurul Islam, shot dead by BDR mutineers during the February mutiny, has been recognised by the government as a martyr and has been awarded full state honour six months after his death.

Subedar Islam was allegedly shot dead when he tried to resist the mutineers at Pilkhana sometime during February 25-26.

The government came to the decision as Islam had been on official duty when he lost his life.

BDR yesterday noon awarded a formal guard of honour and offered floral wreaths at his grave at Char Laksmi village under Ramgati upazila in Laxmipur district.

Bangladesh Rifles Director General and BDR Sector Commander at Comilla Col Mirza Ejazur Rahman PSC and Feni-19 Rifle battalion Acting Commander Major Md Ekramul Kabir Hawlader travelled to Islam’s village home at Char Laksmi under Ramgati upazila yesterday and handed over a cheque for Tk 1 to lakh Nurul Islam’s family.

Islam’s only son Ashraful Alam Hannan, a third year BBA student, appealed to the government that his to family is awarded similar facilities — including financial assistance — as awarded to families of the other martyrs of the BDR mutiny.

Islam’s family identified his body at the Dhaka Medical College Hospital morgue on March 3. He was buried at his family graveyard the next day.
S: The Daily Star

Special drive against unfit vehicles starts today

The government will launch a special drive in the city today in a bid to ease the worsening traffic congestion by seizing unfit, unlicensed and old vehicles plying the roads.

Mobile courts will hit the city streets as part of the crackdown to drive out all illegal modes of transport from roads and to bring order in the traffic movement during Ramadan when the traffic situation takes a grave turn.

An 11-member committee headed by additional secretary of the communications ministry Shafiq Alam Mehdi was formed yesterday during a meeting to supervise the operation of mobile courts and other activities for improving the traffic situation.

“The mobile courts will not spare anybody, even the government officials or public representatives,” Communications Minister Syed Abul Hossain told journalists after presiding over the meeting at the ministry.

He said motor vehicles and rickshaws do not follow the traffic rules and ply in a chaotic manner, causing congestion. “Our first priority is to improve the nagging traffic situation by driving out unfit and unlicensed vehicles,” he added.

Abul Hossain could not say how many mobile courts would start operating today. “It depends on the availability of magistrates,” he said, adding he requested the government to provide him with magistrates to operate the mobile courts.

The meeting discussed ways and means to reduce the gridlock by going tough against the illegal vehicles through introducing mobile courts.

Checking illegal parking, ensuring bus stoppage at only specific stoppages, preventing people from piling of construction materials on roadsides, construction of dedicated lanes for buses and minibuses and eviction of hawkers from the streets are included in the crackdown plan.

The minister urged all concerned to work in a coordinated way and asked Dhaka Metropolitan Police (DMP) to take actions against the drivers having fake licences and documents.

About keeping the educational institutions of the capital closed or changing their timing during Ramadan to ease the traffic jams, he said the education ministry can take measures in this regard.

Among others, Communications Secretary ASM Ali Kabir, DMP Commissioner AKM Shahidul Haq, Executive Director of BTCB ABM Shahjahan, BTRC Chairman Ehsanul Haq and DG of Railway Belayet Hossain attended the meeting.
S: The Daily Star