Runner Automobiles Ltd will make its share trading debut tomorrow (Tuesday) on the bourses under 'N' category, officials said.
Despite the company's IPO shares were credited into respective BO accounts on March 25, trading was delayed due to sluggish market trend, said a DSE official.
Runner Automobiles, a flagship company of Runner Group, raised a fund worth Tk 1.0 billion by floating 13.93 million shares from the capital market under the book-building method.
The book-building method is a process through which an issuer attempts to determine the price of a share based on the demand from institutional investors.
The fund will be utilised for the purpose of research and development works, purchasing machinery, repaying bank loans and bearing the IPO expenses.
The IPO subscription of the company was held between January 31 and February 10.
The cut-off price of the shares of motorcycle maker fixed at Tk 75 each as discovered by eligible investors (EIs) through bidding under the book-building method.
Of 13.93 million shares, more than 8.33 million shares (60 per cent) issued to the eligible institutional investors at the cut-off price of Tk 75 each.
The remaining 5.60 million shares (40 per cent) issued to general investors through IPO at Tk 67 each, after a 10 per cent discount on the cut-off price.
According to financial statements of the motorcycle maker for the year ended on June 30, 2017, the company's net asset value (NAV with revaluation) per share stood at Tk 55.70. The NAV without revaluation was Tk 41.94.
The weighted average of the EPS (earnings per share) is Tk 3.31.
IDLC Investments Limited is the issue manager of the IPO.
Runner Automobiles, which started its journey in 2000, is engaged in manufacturing two-wheelers in Bangladesh. It also started exporting motorcycles to Nepal in January 2017.