Bangladesh
3 years ago

Associated Oxygen’s IPO lottery draw Wednesday

The company raises Tk 150m under fixed price method

Published :

Updated :

Associated Oxygen is set to hold IPO (initial public offering) lottery draw on Wednesday, aiming to allocate 15 million shares among the successful applicants.

The lottery draw will be held at 10:30am at Crystal Ballroom, Hotel Intercontinental in Dhaka, according to a disclosure posted on the Chittagong Stock Exchange (CSE) website on Monday.

After holding the lottery draw, results will be published on the websites of the company, issue manager, Dhaka Stock Exchange and Chittagong Stock Exchange.

The company’s IPO oversubscribed by 31.46 times as the company received worth about Tk 4.72 billion against public issue of IPO of Tk 150 million, according to the disclosure.

The stock market regulator - Bangladesh Securities and Exchange Commission (BSEC)-- on July 16 approved the company’s proposal to raise Tk 150 million from the capital market through IPO.

As per the BSEC approval, the company floated 15 million ordinary shares with an offer price of Tk 10 each using the fixed price method.

The IPO subscription for shares of the company by the eligible investors through an electronic subscription system was held between September 10 and September 16.

The IPO proceeds will be used for construction of store and new plant shed, acquisition of new plant and machinery, repay bank loans and IPO expenses, according to the IPO prospectus.

According to the audited financial report for the year ended on June 30, 2019, the weighted average earnings per share of the company in the last five years stood at Tk 1.51. And, its net asset value (NAV) per share was at Tk 17.37 without revaluation.

BD Finance Capital Holdings Ltd is working as the issue manager of the company for its IPO process.

Started commercial operation in 1992, the Associated Oxygen is a leading producer and supplier of Industrial gases both in liquid and gaseous forms with a well-established business relationship with their clients over the last three decades in this business.

The company supplies Oxygen and Nitrogen in liquid and gaseous forms to Industries and Hospitals through its own sales network.

[email protected]

Share this news