Dhaka, Bangladesh (BBN)-The public subscription of Hamid Fabrics Limited (HFL), a sister concern of Mahin Group, will begin from September 28 as a pilot project of new IPO subscription method, officials said.
The Bangladesh Securities and Exchange Commission (BSEC) allowed the Hamid Fabrics IPO subscription date at a commission meeting held at the office of the BSEC Tuesday.
Under the pilot project, the public subscription will continue till October 2 this year beginning from September 28 through 174 brokerage firms of Dhaka Stock Exchange, 73 brokerage firms of Chittagong Stock Exchange and 37 merchant banks.
However, the investors can also apply for IPO in exiting banking system.
The public subscription will begin on September 28 and remain open till October 2 for resident Bangladeshi and it will continue October 11 for non-resident Bangladeshi (NRB).
The BSEC approved the IPO proposal of Hamid Fabrics on August 12, this year to raise a fund worth BDT 1.05 billion from public.
Using the fixed price method, the textile company is set to float 30 million ordinary shares of BDT 10 each at an offer price of BDT 35, including BDT 25 as premium.
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 is acting as issue manager of Hamid Fabrics’s initial public offering (IPO), the proceedings from which would be used to service Hamid Fabrics’ existing bank loans and fund business expansion.
Hamid Fabrics Ltd is a Public Limited Company registered in Bangladesh and incorporated under the Companies Act, 1994.
It manufactures solid-dyed fabrics for the 100 percent export oriented Ready Made Garment (RMG) industry of Bangladesh. HFL is a deemed exporter, which qualifies for all export incentives and benefits.
BBN/BB/AS-10Sept14-1:00pm (BST)
