Eleven companies from services and manufacturing sectors aim to raise Tk 222.50 crore from the public through initial public offerings (IPOs).

The companies submitted IPO proposals to the Securities and Exchange Commission (SEC) last week seeking approval from the stock market regulator, SEC officials said.

Of the firms, eight are going to public to meet the regulatory requirements, while the three others will use the money for their business expansions.

Of the eight companies from financial services sector, Takaful Islamic Insurance plans to raise Tk 9 crore, First Security Bank Tk 115 crore, National Housing Finance and Investment Tk 5 crore, Industrial and Infrastructure Development Finance Company Tk 5 crore, Bay Leasing and Investment Tk 25.50 crore including a premium of Tk 15.50 crore, Republic Insurance Company Tk 9 crore, Northern General Insurance Company Tk 9 crore, and Standard General Insurance Company Tk 9 crore.

Face value of the companies' shares will be Tk 100 each.

From manufacturing sector, Maksons Spinning Mills

wants to raise Tk 8 crore, while Dhaka Dyeing and Manufacturing plans to raise Tk 17 crore. Face value of the companies' shares will be Tk 10 each.

Another company, Summit Alliance Port submitted proposals to raise Tk 10 crore through IPO.

If allowed, the entry of the eleven new companies into the stock market will increase the supply of shares in the market, said Farhad Ahmed, executive director of SEC.

"Moreover, the companies' move to raise funds from the stock market will encourage other entities to list on the exchanges,” he said.

If there are no loopholes in the proposals, the SEC will give permission to the companies as early as possible to start IPO process, he added.

Brae Bank meanwhile has also submitted application to the SEC to raise Tk 132 crore through offering rights shares. In 2007, the stock market absorbed 14 new issues, which raised a total of Tk 1,005.68 crore through IPOs. This year, so far only one, Delta Brae Housing, raised Tk 10.50 crore including a premium ofTk 5.50 crore from the market.

sarwar@thedailystar.net