Subscription hits 9-time high, lottery on May 30

Bashundhara Paper Mills, a concern of Bashundhara Group, will hold IPO lottery on May 30 to allocate shares among the successful general applicants.

The company's initial public offering (IPO) hit more than nine-time higher than the shares earmarked for the general investors, officials said.

The lottery programme will be held at 10:30am at International Convention City Bashundhara Hall-1 (ICCB) in the city.

The IPO results will be published on the websites of Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and the company after the lottery programme.

Bashundhara Paper Mills received the approval of Bangladesh Securities and Exchange Commission (BSEC) on August 27 last year to conduct the electronic bidding for determining the cut-off price for its IPO.

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

The company raised Tk 2.0 billion, by floating more than 26 million ordinary shares, of which 15.62 million shares or 60 per cent is reserved for the eligible investors at Tk 80 each as per the book-building method.

Remaining 10.40 million shares or 40 per cent will be issued to the general shareholders, including non-resident Bangladeshis, at 10 per cent discount on cut-off price, meaning the general investors will get the company's share at Tk 72 each.

The IPO subscription was opened to resident and non-resident Bangladeshis during the period of April 30 to May 09.

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

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. AAA Finance & Investment is working as issue manager of the company's IPO.

SK Trims: The IPO subscription of SK Trims & Industries, which opened on May 14, will end today (Tuesday).

SK Trims, which received the regulatory approval in February, floated 30 million ordinary shares at an issue price of Tk 10 each and set to raise a capital worth Tk 300 million under the fixed price method.

The company will use the IPO fund for procurement of capital machinery and equipment, construction of building and other civil works and meeting the IPO expenses.

The company's pre-IPO paid-up capital is Tk 400 million and authorised capital is Tk 1.0 billion.

Imperial Capital Limited and BMSL Investment Limited are jointly working as the issue manager of the company's IPO.

SK Trims, 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.

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