Public subscription of Aman Cotton Fibrous is set to begin on June 03 for raising Tk 800 million from the capital market under the book-building method.
The public subscription of Aman Cotton will continue till June 10.
Aman Cotton, which already received Bangladesh Securities and Exchange Commission's approval, will float 20.83 million ordinary shares to raise the amount.
Of the total 20.83 million shares, 12.50 million 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 (initial public offering) fund as part of its efforts to buy machinery, repay bank loans and meet the IPO expenses.
The net asset value of the company was Tk 35.63 as of June 2016 and weighted average earnings per share (EPS) was Tk 3.49, according to the IPO prospectus.
ICB Capital Management is the issue manager of the IPO.
Meanwhile, the IPO subscription of Bashundhara Paper Mills, which started its subscription on April 30, ends tomorrow (Wednesday). The company is set to raise Tk 2.0 billion through book building method.
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 will float more than 26 million shares, of which 15.62 million shares or 60 per cent 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 of Tk 72 each.
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.
