Bashundhara Paper’s IPO subscription to begin April 26

Public subscription of Bashundhara Paper Mills is set to begin on April 26 for raising Tk 2.0 billion from the capital market under the book-building method.

Bashundhara Paper Mills received the regulatory approval from Bangladesh Securities and Exchange Commission (BSEC) on August 27 to conduct the electronic bidding for determining the cut-off price for its initial public offering (IPO).

The company conducted electronic bidding in October 2017 and the cut-off price has been fixed at Tk 80 each, including a premium of Tk 70 for each Tk 10 share for the eligible institutional investors.

The company will float more than 26 million shares, of which 15.62 million shares (60%) to be issued to the eligible investors at Tk 80 each.

Remaining 10.40 million shares will be sold to general shareholders, including non-resident Bangladeshis, at 10 per cent discount on cut-off price, meaning the general investors will get each share of the company at Tk 72 each, as per the book-building method.

The company's IPO fund will be used to purchase machineries about Tk 1.35 billion, to repay bank loans of about Tk 600 million and to bear IPO expenses about Tk 50 million, according to the IPO prospectus.

According to financial statement for the year ended on June 30, 2016, the company's net asset value (NAV) per share (EPS) is Tk 30.49, including revaluation reserve, whereas the value is Tk 15.79 without revaluation reserve.

The weighted average of earnings per share (EPS) was Tk 1.46 for the year ended on June 30, 2016.

The Bashundhara Paper Mills produces different types of papers such as writing and printing papers, white printing papers, photocopy and sanitary papers, multipurpose papers, colour printing papers, ledger printing papers and bidi papers.

AAA Finance & Investment is working as issue manager for Bashundhara Paper Mills.

SK Trims: The public subscription of SK Trims and Industries will start on May 16 and will be continued till May 24.

SK Trims, which received BSEC approval in February, is set to collect Tk 300 million through IPO under the fixed price method by floating its 30 million shares at an issue price of Tk 10 each.

The company will use the IPO proceeds to purchase capital machinery and equipment, construct building and meet IPO expenses.

As per the entity's audited financial statements for the year ended on June 30, 2017, the company's net asset value per share and weighted average earnings per share are Tk 12.79 and Tk 1.31 respectively.

SK Trims & Industries, which started its commercial operation in 2014, engaged in manufacturing of all kinds of swing thread, elastic, poly, carton, photo card, back board, bar code etc for export-oriented garments industry.

Aman Cotton: The public subscription of Aman Cotton Fibrous will be held between June 3 and June 11 which will raise Tk 800 million from the capital market using the book-building method.

Aman Cotton, which already received BSEC approval, will float 20.83 million ordinary shares to raise the amount.

Of the total 20.83 million shares, 12.50 million shares will be issued to eligible investors at the cut-off price of Tk 40 each which was set by the eligible investors through the electronic bidding in November last year.

Remaining 8.33 million shares will be sold to general shareholders, including non-resident Bangladeshis, at 10 per cent discount on cut-off price of Tk 40, meaning the general investors will get each share of the company at Tk 36 each.

Aman Cotton will use the IPO fund as part of its efforts to buy machinery, clear bank loans and to meet the IPO expenses.

The net asset value of the company was Tk 35.63 as of June 2016 and weighted average earning per share (EPS) was Tk 3.49, according to the IPO prospectus.

ICB Capital Management is the issue manager of the Aman Cotton Fibrous' IPO.

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