Dhaka, Bangladesh (BBN)-The initial public offering (IPO) subscription of Bangladesh Steel Re-Rolling Mills (BSRM) begins Sunday.
The aim of IPO subscription is to raise a fund worth BDT 612.5 million from the public, officials said.
IPO subscription will remain open till February 5 for resident Bangladeshi and it will continue till February 14 for non-resident Bangladeshis (NRB).
The securities regulator – Bangladesh Securities & Exchange Commission (BSEC) – approved the IPO proposal of Bangladesh Steel Re-Rolling Mills on December 9 last year.
The Chittagong-based steel manufacturing conglomerate set to float 17.5 million ordinary shares of BDT 10 each along with BDT 25 as premium. A market lot is 200 shares.
The fund raised through the public offerings will be used to set up a new plant, purchase machinery and to meet the expenses of IPO proceedings, according to the company’s IPO prospectus.
The company’s earnings per share, as of December 2013, stood at BDT 5.06 and net asset value per share BDT 52.09.
BSRM Steels, a unit of BSRM, is already listed on the stock market.
Alliance Financial Services is acting as issue manager of the initial public offering, the proceeds of which will be used for BSRM’s ongoing expansion and loan repayment.
At present 28 companies listed in the engineering sector on the DSE, accounting for around 4.0 percent of the total market capitalisation of DSE.
BBN/BB/AS-1Feb15-11:30am (BST)