Dhaka, Bangladesh (BBN)-The initial public offering (IPO) subscription of Aman Feed, a concern of Aman Group, began Monday to raise a fund worth BDT 720 million from the public, officials said.
The fisheries and livestock feed producer and supplier 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, which aimed to cut down the processing time to three weeks from more than five weeks.
The public subscription of the company will be ended on June 4.
Market lot of the company is 200 shares.
The stock market regulator – Bangladesh Securities and Exchange Commission (BSEC) – approved the IPO proposal of Aman Feed on April 9, this year.
The company is set to float 20 million ordinary shares worth Tk 10 each at an offer price of Tk 36, with Tk 26 as premium, according to the company’s IPO prospectus.
The company will use the funds from the initial public offering for business expansion 46.61 per cent, repayment of long-term loan 7.02 per cent, working capital 41.55 per cent and IPO expenses 2.82 per cent.
The company’s earnings per share (EPS) as of June 2014 stood at Tk 4.97 with a net asset value (NAV) per share of Tk 30.77. LankaBangla Investments is the issue manager for the IPO.
Aman Feed Limited (AFL) was incorporated on February 07, 2005 and started its commercial production on July 12, 2006.
The factory is located at Ullahpara in Sirajganj, a north-western district of Bangladesh.
The company is primarily engaged in producing and distributing poultry, fish, shrimp and cattle feed, according to the company’s website.