Runner Automobiles IPO

Eligible investors discover share price at Tk 75

FE Report | Published: September 14, 2018 12:57:09 | Updated: September 16, 2018 11:32:54

The cut-off price of the shares of Runner Automobiles limited has been fixed at Tk 75 each as discovered by eligible investors (EIs) through bidding under the book building method.

The EIs will get the shares at Tk 75 each and general investors at 10 per cent discount (Tk 67 each).

The EIs will be allowed to purchase 60 per cent of the shares while the general investors will be able to apply for remaining 40 per cent shares.

The bidding for IPO (initial public offering) shares of Runner Automobiles by EIs was held during September 10-13, 2018.

According to IDLC Investments, issue manager of Runner Automobiles, a total of 592 EIs bet for the shares.

On July 10 last, the Bangladesh Securities and Exchange Commission (BSEC) allowed Runner Automobiles to determine the cut-off price required to go public under the book building method.

Runner Automobiles will raise a capital worth Tk 1.0 billion. Of the amount, Tk 625 million will come from EIs and remaining Tk 375 million from the general investors.

The company will utilise the IPO fund for research and development works, purchasing machinery, repaying bank loans and bearing the IPO expense.

According to financial statements for the year ended on June 30, 2017, the company's net asset value (NAV) per share is Tk 55.70, with revaluation reserve.

And, the value is Tk 41.94 without revaluation reserve. The weighted average of the EPS (earnings per share) is Tk 3.31.

Runner Automobiles is a motorcycle manufacturer in Bangladesh. It produces 12 different types of motorcycles ranging between 80cc and 150cc.

According to officials, the company has 15 per cent market share in the country's auto industry. The company also assembles three-wheelers and four-wheelers.

Runner Automobiles has also moved to produce motorcycles of 165cc to 500cc based on imported parts and raw materials.

The commerce ministry gave its consent on August 30 last to import parts and raw materials, the company officials said.

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