The cut-off price of ADN Telecom's shares has been fixed at Tk 30 each, as discovered by institutional investors through electronic bidding under the book-building method.
ADN Telecom, the IT and telecommunication service provider, will raise capital worth Tk 570 million under the book building method.
Book building is a process through which an issuer attempts to determine the price to offer for its security based on demand from eligible institutional investors.
The bidding for shares of the company by the eligible investors through the uniform and integrated electronic subscription system was held between November 05 and November 08.
The eligible investors proposed prices between Tk 15 and Tk 45 during the period. Then the cut-off price was set at Tk 30 each, according to the Dhaka Stock Exchange (DSE) website.
The offer period for eligible investors will start at 10:30am on November 11 and continue until 10:30am on November 12 (round the clock).
The eligible investors will submit their valuation reports along with workings and calculations to the exchange through an electronic subscription system.
The valuation report submission period will start at 10:30am on November 12 and continue until until 10:30am on November 14 (round the clock).
The securities regulator, Bangladesh Securities & Exchange Commission (BSEC), allowed ADN Telecom to determine its cut-off price - a requirement for going public under the book building method-on August 14.
According to the public issue rules, eligible investors and mutual funds are allowed to purchase 50 per cent and 10 per cent shares respectively at the cut-off price.
The general public and non-resident Bangladeshis (NRBs) are allowed to purchase 30 per cent and 10 per cent shares respectively at 10 per cent discount on the cut-off price, meaning the general public and NRBs will get each share at Tk 27.
The company will utilise the IPO (initial public offering) fund to develop infrastructure, establish a data centre, repay bank loans and bear the IPO expenses.
As per the financial statement for the year ended on June 30 last year, the net asset value (NAV) per share was Tk 16.13. The basic EPS (earnings per share) and adjusted EPS were Tk 2.52 and Tk 2.36 respectively. The weighted average EPS stood at Tk 1.81.
Earlier in October 2017, the company completed IPO road show as part of going public under the book building method.
ICB Capital Management is working as the issue manager of the ADN Telecom.
ADN Telecom is one of the leading IT and telecommunication service providers in Bangladesh. It offers a wide range of data, voice, and internet services to its local and international clients.
It commenced its journey in 2003, as a private limited company, namely 'Advanced Data Networks System Ltd'. The company was renamed "ADN Telecom Ltd." and became a public limited company in 2012.
ADN Telecom operates highly diverse access and nationwide transmission networks.
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