Index Agro Industries, the poultry and fish feed producer, is set to hold its initial public offering (IPO) lottery draw on March 22 to allocate IPO shares.
Index Agro Industries, which received IPO approval from the Bangladesh Securities and Exchange Commission (BSEC) on December 23, 2020, raised Tk 500 million under the book-building method to expand its business.
The IPO subscription of the company was held between February 22 and February 28, this year.
Earlier, the company completed electronic bidding and explored its cut-off price of shares -- a requirement for going public under the book building method.
Index Agro Industries' cut-off price was fixed at Tk 62 each through electronic bidding by eligible investors.
As per the book-building method, general investors, including non-resident Bangladeshis, get IPO shares at a 10 per cent discount on the cut-off price of companies.
However, the general investors and non-resident Bangladeshis got Index Agro's IPO shares at Tk 50 each, a 20 per cent discount on its cut-off price as the company gave extra 10 per cent discount on its cut-off price.
The eligible investors received 50 per cent shares at their own bid price while the remaining 50 per cent shares were reserved for IPO general investors and non-resident Bangladeshis, according to the book-building method.
The company will use the IPO proceeds to acquire machinery and equipment, construction of buildings and civil works, and cater for the expenditure of the IPO process.
According to the audited financial statement as of June 30, 2019, the company's weighted average earnings per share (EPS) for the past five years were Tk 7.07.
The company's net asset value (NAV) per share was Tk 45.03 with revaluation and Tk 44.06 without revaluation.
The company's authorised capital is Tk 1.0 billion while pre-IPO paid-up capital is Tk Tk 390 million and post-IPO paid-up capital will be Tk 472.53 million.
AFC Capital Ltd and EBL Investments Ltd are the issue managers for the company's IPO.
Incorporated in 2000, the principal activities of Index Agro Industries are manufacturing and marketing poultry feed, fish feed, and producing day-old chicks.