The initial public offering (IPO) subscription of Oimex Electrode will begin on Tuesday (September 5), which will raise Tk 150 million from the general public under the fixed price method.
The IPO subscription of the company will remain open till September 13 for resident and non-resident Bangladeshis.
As per the latest amendments to the Bangladesh Securities and Exchange Commission (Pubic Issue) Rules, 2015, IPO subscription of Oimex Electrode will be launched through electronic subscription system.
Electronic subscription system under fixed price method has been developed as per amendment of the Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015.
All eligible institutional investors have to apply for all IPOs at fixed price method from now through the new electronic subscription system of DSE and CSE.
The securities regulator on May 9 approved the Oimex Electrode’s IPO proposal to raise the said amount from the capital market through initial public offering.
The company will float 15 million ordinary shares at an issue price of Tk 10 each.
A market lot is 500 shares and an investor needs Tk 5,000 to apply for per lot of Oimex Electrode IPO.
The required amount (per lot) of foreign currency for NRBs and foreign applicants for IPO of the company are US$ 61.92 or GBP 47.57 or EUR 52.75, according to Dhaka Stock Exchange (DSE).
Oimex Electrode will use the IPO fund for procurement of capital machinery, equipment and raw materials and to meet up IPO expenses.
As per the entity’s audited financial statement for the year ended on June 30, 2016, Oimex Electrode’s net asset value (NAV) per share and weighted average earnings per share (EPS) were Tk 14.87 and Tk 2.03 respectively.
MTB Capital, a leading issue managing company is working as the issue manager of the company’s IPO.
Established in 2005, Oimex Electrode is the fastest growing electrode, nails and galvanized wire manufacturing company in Bangladesh, and subsequently converted into public limited company in 2014.
The company is engaged in manufacturing and marketing of Welding Electrodes, Wire (G. I. Wire) and Tarkata (Nail). The core markets for the product of the company are engineering workshop, developer companies and other local customers, according to the company’s website.
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