Dhaka, Bangladesh (BBN)-Hamid Fabrics Limited (HFL), a textile maker, got the listing approval from the Dhaka Stock Exchange (DSE) Monday, taking the way to make its debut on the premier bourse.
The approval came at a DSE board meeting held Monday at the DSE board room chaired by its Chairman Justice Siddiqur Rahman Miah.
Trading date of Hamid Fabrics will be announced soon, said a DSE official.
“We will fix the trading date after transferring shares to respective beneficiary owners’ (BO) accounts,” he said.
Hamid Fabrics was the first in offering issues under the new IPO method through the stockbrokers and merchant banks which aimed to cut down the processing time to three weeks from more than five weeks.
The public subscription of Hamid Fabrics was held September 28 to October 2 for resident Bangladeshi while October 11 for non-resident Bangladeshis.
Using the fixed price method, the textile company floated 30 million ordinary shares of BDT 10 each at an offer price of BDT 35, including BDT 25 as premium and raised a fund worth BDT 1.05 billion from public.
The textile company’s IPO subscription is oversubscribed around nine times. A market lot is 200 shares.
The company’s five-year weighted average earnings per share, as of June 2013, stood at BDT 2.97 and the net asset value per share BDT 41.14 after revaluation, according to IPO prospectus.
ICB Capital Management acted as the issue manager of the company’s IPO, the proceedings from which would be used to service Hamid Fabrics’ existing bank loans and fund business expansion.
The Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of Hamid Fabrics on August 12, this year to raise a fund worth Tk 1.05 billion from public.
BBN/BB/SS-24Nov14-10:20pm (BST)