The bidding for discovering cut-off price for initial public offering (IPO) of ADN Telecom Ltd by eligible investors will begin tomorrow (Monday).
The electronic bidding will continue until 5.00pm on November 08 round-the-clock, officials said.
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.
As per the regulatory approval, ADN Telecom will raise a 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 institutional investors.
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.
The company will utilise the IPO fund to develop infrastructure, establish 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 is Tk 16.13. The basic EPS (earnings per share) and adjusted EPS are 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 ADN Telecom.
ADN Telecom Ltd. is one of the leading IT and telecommunication service providers in Bangladesh. It offers wide range of data, voice, and internet services to its local and international clients.
It commenced business in 2003, as a private limited company, as "Advanced Data Networks System Ltd" The company was renamed as "ADN Telecom Limited" and became a public limited company in 2012.
ADN Telecom operates highly diverse access and nationwide transmission networks. They are composed of wireless, fiber optic and satellite infrastructures.
