The initial public offering (IPO) lottery of Bashundhara Paper Mills Limited will be held on May 30 to allocate ordinary shares among the successful applicants.
The lottery programme will be held at 10:30am at International Convention City Bashundhara hall-1 (ICCB) in the city, officials said.
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 regulatory approval from Bangladesh Securities and Exchange Commission (BSEC) on August 27 last year to conduct the electronic bidding for determining the cut-off price for its initial public offering.
The company conducted electronic bidding in October 2017 and the cut-off price has been 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 (60 per cent) to be issued to the eligible investors at Tk 80 each.
Remaining 10.40 million shares will be issues to the general shareholders, including non-resident Bangladeshis, at 10 per cent discount on cut-off price, meaning the general investors will get each share of the company at Tk 72 each, as per the book-building method.
IPO subscription to the company was open to resident and non-resident Bangladeshis during the period of April 30 to May 09.
The company sources said that the total applications by the general investors are nine times higher than the shares earmarked for the investors.
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.
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 for Bashundhara Paper Mills.
Bashundhara Paper Mills, a concern of country’s leading business conglomerate Bashundhara Group, produces a wide range of paper and paper products. The company also exports paper. It has three production units in Narayanganj and Munshiganj.
