Dhaka, Bangladesh (BBN)-The initial public offering (IPO) subscription of Bangladesh Steel Re-Rolling Mills (BSRM) oversubscribed by 20 times against its public issue, according to Chittagong Stock Exchange (CSE).
The Chittagong-based steel manufacturing conglomerate received over BDT 12.32 billion through IPO against public issue of BDT 612.50 million, which is over subscribed by 20 times.
Among the total subscription received, BDT 8.62 billion from general public, BDT 916.27 million from affected small investors, BDT 588.88 million from non-resident Bangladeshis and BDT 2.20 billion from mutual fund, according to final data from the CSE.
IPO subscription of the company took place from February 1 to February 5 for resident Bangladeshi and it continued till February 14 for non-resident Bangladeshi (NRB).
The steel manufacturer floated 17.5 million ordinary shares at an offer price of BDT 35, including a premium of BDT 25 for each ten taka share.
The company reported earnings per share, as of December 2013, stood at BDT 5.06 and net asset value per share BDT 52.09.
The fund raised through the public offering will be used for BSRM’s ongoing expansion and loan repayment, according to the company’s IPO prospectus.
Alliance Financial Services is acting as issue manager of the initial public offering of BSRM.
The securities regulator - Bangladesh Securities & Exchange Commission (BSEC) - approved the IPO proposal of Bangladesh Steel Re-Rolling Mills on December 9 last year.
BBN/BB/AS-02Mar15-7:40pm (BST)