Dhaka, Bangladesh (BBN)-The Initial Public Offering (IPO) lottery of Hamid Fabrics Limited (HFL) will be held Thursday to allocate shares among the investors, officials said.
The lottery will be held at 10:00am at the Institution of Engineers in Ramna of Dhaka.
Bangladesh University of Engineering and Technology (BUET) will conduct IPO lottery.
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.
As many as 174 stockbrokers from the Dhaka Stock Exchange (DSE) and 73 from the Chittagong Stock Exchange (CSE) along with 37 merchant banks participated in the Hamid fabric’s IPO.
The public subscription of the company 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 BDT41.14 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.
BBN/BB/ANS-29Oct14-8:00pm (BST)