Dhaka, Bangladesh (BBN)- The initial public offering (IPO) lottery of Aman Feed Ltd (AFL) will be held today (Wednesday) to allocate shares among the successful applicants, officials said.
The lottery programmee will be held at 11am at Seminar Hall of the Institution of Engineers, Bangladesh (IEB), Ramna, according to the Chittagong Stock Exchange (CSE).
Aman Feed, a concern of Aman Group, floated 20 million ordinary shares worth Tk 10 each at an offer price of Tk 36, including Tk 26 as premium, according to the company’s IPO prospectus.
The fisheries and livestock feed producer and supplier’s IPO subscription was held between May 25 and June 4 and raised a fund worth BDT 720 million from the public.
Total subscription received above BDT 9.10 billion against public issue of IPO of BDT 720 million, which is oversubscribed by 12.64 times.
Aman Feed is the first in offering issue under the mandatory new IPO method through the stockbrokers and merchant banks instead applying through banks.
The securities regulator has made the submission of application for IPO shares through merchant banks and brokerage firms mandatory recently instead of applying through banks, aimed to cut down the processing time to three weeks from more than five weeks.
The stock market regulator -- Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of Aman Feed on April 9, this year.
The company offered 60 per cent shares for general public, 20 per cent for affected small investors, 10 per cent for non-resident Bangladeshi and 10 per cent for mutual funds.
The company is begin used 46.61 per cent of the funds from the initial public offering for business expansion, 7.02 per cent for repayment of long-term loan, 41.55 per cent for working capital and 2.82 per cent for IPO expenses, according to IPO prospectus.
The company's earnings per share (EPS) as of June 2014 stood at BDT 4.97 with a net asset value (NAV) per share of BDT 30.77.
BBN/BB/SSR