The New Nation - Internet Edition

BUSINESS REPORT

The Securities and Exchange Commission (SEC) on Tuesday gave consent to the public float of 'Grameen One: Scheme Two', the second scheme of 'Grameen Mutual Fund One' sponsored by Grameen Bank under the management of AIMS of Bangladesh Limited.

The application for the purpose was made by AIMS way back in January 16, 2008 but initially the SEC apparently had some reservations on some unique propositions that the scheme devised. However, eventually the constituents could prevail with strong legal arguments in favour of the mechanism.

Having a paid-up capital of Tk1.25 billion (Tk125 crore) the Scheme is by far the single largest listed mutual fund undertaking ever in the country. It is also for the first time a 'growth' scheme is being launched in the local capital market. With a 15-year initial tenure it has the longest life and it is also for the first time that any mutual fund in Bangladesh is venturing to float multiple schemes.

In an unforeseen pioneering move to benefit thousands of general investors, provision was kept for Entitlement to 17 million units of Tk 10 each at par totalling Tk170 million in 'Grameen One : Scheme Two' for the existing unit holders appearing on the register of 'Grameen One', the first scheme of the Fund now traded on the stock exchanges. Record date for the purpose was set for March 25, 2008 after the regulator declined on March 18, 2008 to consider the application without submission of bank certificate evidencing prior receipt of such deposit against the proposed Entitlement. Subsequently, 98 percent of the Entitlement was subscribed and evidence of deposit submitted by AIMS to the SEC on April 17, 2008.

Grameen Bank has already subscribed for Tk250 million as Sponsor's contribution in the new Scheme and pre-IPO allocation has been made in favour of various associate institutions and enterprises of the Grameen Bank family and capital market functionaries for Tk680 million while existing unit holders have subscribed for Tk166.59 million. The prospectus for public offer of 15.341 million units of Tk10 each totalling Tk153.41 million has now received the SEC nod. The public subscription may commence in early June to be collected at selected branches of AB Bank Limited, The City Bank Limited, Mutual Trust Bank Limited and the Investment Corporation of Bangladesh (ICB).

No paper certificate or allotment letter will be issued by the Fund. Instead the units will be credited directly to the successful BO accounts within 72 hours of the conduct of allotment lottery.

The Scheme also intends to commence trading on the bourses within 10 (ten) working days from conduct of lottery for allotment against the public subscription. Refunds against unsuccessful applications would be directly credited to the respective bank accounts of the applicants within 30 working days from closing of the subscription list.