Dhaka, Bangladesh (BBN)-Public subscription of Bangladesh Steel Re-Rolling Mills (BSRM) hit over 12 times high against its public issue, according to Chittagong Stock Exchange (CSE).
The Chittagong-based steel manufacturing conglomerate received over BDT 7.50 billion through initial public offering (IPO) against public issue of BD 612.50 million, which is over subscribed more than 12 times.
Among the total subscription received, BDT 7.34 billion from resident Bangladeshis and BDT 164.50 million from non-resident Bangladeshis, according to primary data from the CSE.
IPO subscription of the company has taken place from February 1 to 5 this year for resident Bangladeshi and it was continued till February 14 for non-resident Bangladeshis (NRBs).
The steel manufacturer floated 17.5 million ordinary shares at an offer price of BDT 35, including a premium of BT 25 for each ten taka share.
The company reported earnings per share, as of December 2013, stood at BDT 5.06 and net asset value per share BDT 52.09.
The fund raised through the public offering will be used for BSRM’s ongoing expansion and loan repayment, according to the company’s IPO prospectus.
Alliance Financial Services is acting as issue manager of the initial public offering of BSRM.
The securities regulator - Bangladesh Securities & Exchange Commission (BSEC) approved the IPO proposal of Bangladesh Steel Re-Rolling Mills on December 9, 2014.
BSRM Steels, a unit of BSRM, is already listed on the stock market.
At present 29 companies listed in the engineering sector on the DSE, accounting for more than 4.0 percent of the total market capitalization of the DSE.
The BSRM started its journey in 1952, maintaining the leadership position in the steel industry by producing the best quality steel products, continuously enhancing customer satisfaction and becoming a reliable business partner of the customers.
BBN/BB/SS-16Feb15-1:00pm (BST)