The cut-off price of Delta Hospital Ltd’s shares has been fixed at Tk 11 through electronic bidding by eligible institutional investors.
The Dhaka Stock Exchange (DSE) on Sunday disclosed the cut-off price of Delta Hospital shares.
The hospital will raise a fund worth Tk 500 million from the capital market using the book building method to expand business and repay bank loans.
As per the disclosure, institutional investors will buy shares worth Tk 315.43 million at the cut-off price of Tk 11 each.
The individual investors will be able to purchase the rest of the shares through initial public offering (IPO) worth more than Tk 184 million at Tk 10 each, a 10 per cent discount on the cut-off price.
The electronic bidding, under the book building method of the IPO, took place for 72 hours – from March 22 to March 25.
During this period, a total of 88 eligible institutional investors offered different prices to buy the company’s shares. Among them, the highest 14 bidders bid for Tk 15 each share of the company.
The highest bidding price was Tk 46 and the lowest was Tk 11 per share.
The valuation report submission period for eligible investors has also been revised as the market was shut due to COVID-19 pandemic.
Revised period for submission of valuation report started at 10:30am on May 31, 2020 and will continue till 10:30am on June 02, 2020 (round the clock) instead of earlier scheduled time from March 29 to March 31.
The Bangladesh Securities and Exchange Commission (BSEC) allowed the company to explore its cut-off price on February 11 — a requirement for going public under the book building method.
The company will utilise the IPO proceeds for buying capital machinery, repay bank loans and bear the IPO expenses.
As per the financial statement for the year ended on June 30, 2019, the net asset value (NAV) per share was Tk 45.84 with asset revaluation and Tk 16.62 without asset revaluation. The basic earnings per share (EPS) stood at Tk 2.10 and the weighted average EPS stood at Tk 1.91.
Its paid-up capital is Tk 322.12 million and authorised capital is Tk 1.0 billion as of June 30, 2019.
Prime Finance Capital Management Ltd is the issue manager and ICB Capital Management Ltd is acting as the registrar of the company’s IPO.
Started journey in 1987, the hospital is engaged in general medical treatment plus in cancer diagnosis, treatment and management in Bangladesh’s private sector.