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The Financial Express

Delta Hospital's cut-off price fixation delayed further

The hospital to raise Tk 500m from the capital market


FE Report | Published: May 13, 2020 10:52:01 | Updated: May 16, 2020 09:51:11


File photo (collected) File photo (collected)

The fixation of cut-off price of Delta Hospital shares has been delayed further as the stock market remained closed in line with the government holidays.

The government has extended the ongoing shutdown until May 16 as the death toll from Covid-19 and the number of detected patients kept rising.

The death toll from the deadly virus has reached to 250 and the number of total infected person stands at 16,660 as of Tuesday (May 12).

If the government extends the general holiday further, the trading and settlement activities on the DSE will remain closed in line with the government holidays, a DSE official told the FE, seeking anonymity.

He sees little hope to resume trading and official activities on the bourse before Eid-ul-Fitr vacation.

As a result, the cut-off price of Delta Hospital shares will be fixed when the trading resumes after holidays, he added.

The trading and settlement activities on the bourses remained closed since March 26 in line with the government holidays.

The bidding for eligible investors to discover the cut-off price of its shares through electronic subscription system ended on March 25.

The valuation report submission period for eligible investors will also be extended further due to the government holiday, the DSE official said.

Earlier, valuation report submission period for EIs was extended April 5 to April 7, instead of previous schedule on March 29 to March 31, due to government holidays.

The prime bourse will further revise the valuation report submission period for EIs as the government extended holiday until May 16 to flatten the spread of deadly novel coronavirus, he said.

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.

As per the regulatory approval, the company is set raise a capital worth Tk 500 million using the book building method to expand business and repay bank loans.

As per the revised public issue rules, eligible investors and mutual funds are allowed to purchase 40 per cent and 10 per cent shares respectively at the cut-off price.

The general public and non-resident Bangladeshis (NRBs) are allowed to purchase 40 per cent and 10 per cent shares respectively at 10 per cent discount on the cut-off price.

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.

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