The cut-off price of shares of Mir Akhter Hossain Ltd, a construction company, has been fixed at Tk 60 each through electronic bidding by eligible investors.
As per the book-building method, eligible investors took part in the price discovery of the shares by bidding for 72 hours – from 5:00pm on October 4 to 5:00pm on October 7.
During this period, 245 institutional and eligible investors offered different prices to buy the company’s shares. Among them, most bids were Tk 50 and Tk 61.
A total of 24 bidders offered Tk 50 each and 17 bidders offered Tk 61 each to buy the company’s shares.
The highest bidding price was Tk 98 and the lowest was Tk 14.
The eligible investors will buy 50 per cent or worth Tk 625 million shares at the cut-off price which has been set at Tk 60 each through electronic bidding, as per the book building method.
The remaining 50 per cent shares will be opened to the IPO participants, including general investors and non-resident Bangladeshis, at a 10 per cent discount on the cut-off price, meaning the general investors will get IPO shares at Tk 54 each.
The stock market regulator allowed Mir Akhter Hossain Ltd to explore its cut-off price on August 13 - a requirement for going public under the book-building method.
As per the regulatory approval, the company is set to raise a capital worth Tk 1.25 billion from the capital market for expansion of business.
The construction and engineering company will use the raised fund for purchasing construction equipment and machinery, repay bank loans and IPO-related expenses.
As per the audited financial statement, as of June 30, 2019, the company’s earnings per share (EPS) was Tk 6.32, net asset value per share Tk 34.71, including re-evaluated reserve and Tk 33.63 excluding re-evaluated reserve.
Besides, the company’s weighted average earnings per share was Tk 6.21.
IDLC Investments is the issue manager for the company’s IPO process.
Mir Akhter Hossain Ltd, which started its journey in the field of construction industry in 1968, has over fifty years of experience with a proven track record in the construction industry of Bangladesh.
The company has been working in the construction sector since its establishment. Now, it works in constructing roads and bridges, airports, railway tracks, civil infrastructure of power plants, buildings and factories etc.
The company has implemented many projects including Mirpur-Airport connecting flyover, Tongi flyover, Karnaphuli Bridge connecting four-lane road, Bangabandhu Bridge four-lane road, Radisson Blu Dhaka, Hatirjheel Project bridges, Mugda 500-bed Hospital, Ashuganj 400 megawatt power plant etc.