The bidding period for eligible investors to discover the cut-off price of Delta Hospital Limited shares through electronic subscription system will commence from March 22.
The electronic bidding will continue until 5:00pm on March 25 round-the-clock, officials said.
The valuation report submission period for eligible investors through electronic subscription system will start at 10:30am on March 29 and continue till 10:30am on March 31.
Each Eligible Investor (EI) who intends to participate in the electronic bidding to determine the cut-off price of ordinary shares of Delta Hospital shall require maintaining a minimum investment of Tk 10 million only at market price in the listed securities as on March 11, 2020.
The stock market regulator -- Bangladesh Securities and Exchange Commission (BSEC) -- allowed the company to explore its cut-off price on February 11 - a requirement for going public under the book building method.
As per the regulatory approval, the company will raise a capital worth Tk 500 million using the book building method to expand business and repay bank loans.
As per the revised public issue rules, eligible investors and mutual funds are allowed to purchase 40 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 40 per cent and 10 per cent shares respectively at 10 per cent discount on the cut-off price.
The company will utilise the IPO proceeds for buying capital machinery, repay bank loans and bear the IPO expenses.
As per the financial statement for the year ended on June 30, 2019, the net asset value (NAV) per share was Tk 45.84 with asset revaluation and Tk 16.62 without asset revaluation. The basic earnings per share (EPS) stood at Tk 2.10 and the weighted average EPS stood at Tk 1.91.
Prime Finance Capital Management Ltd is the issue manager and ICB Capital Management Ltd will act as the registrar of the company’s IPO.
