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The Financial Express
Swasti Lankabangla Swasti Lankabangla

Modern Steel holds IPO road show today

| Updated: April 22, 2018 20:20:50


Modern Steel holds IPO road show today

Modern Steel Mills Limited holds the IPO (initial public offering) road show today (Sunday) for the eligible institutional investors.

The company will hold the road show as part of going public under the book building method.

The steels maker is set to raise Tk 2.0 billion from the capital market through IPO for repaying the bank loans, purchasing machinery and meeting IPO expenses.

The road show will be held at 6:30pm at International Convention Centre Bashundhara, where eligible institutional investors will get detail information about the company, according to a recent disclosure posted on the website of Chittagong Stock Exchange (CSE).

A road show is a requirement under the book building regulations before price discovery. Book Building is a process through which an issuer attempts to determine the price to offer for its security based on demand from institutional investors.

Eligible institutional investors like merchant bankers, asset management companies, stock dealers, banks, mutual funds and collective investment scheme, financial institutions, insurance companies, alternative investment fund managers and other institutions as per approved by the commission will participate in the event.

Under the book building method, eligible investors will be allowed to purchase 50 per cent shares of the company at cut-off price, while mutual funds will purchase 10 per cent of shares at the same price.

General public and non-resident Bangladeshis (NRBs) will get 30 per cent and 10 per cent shares respectively at 10 per cent discount from the cut-off price, according to the revised public issue rules.

mufazzal.fe@gmail.com

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