Dhaka, Bangladesh (BBN)-The public subscription of Hamid Fabrics Limited (HFL), began Sunday as a pilot project of new IPO subscription method through stock brokers and merchant banks, officials said.
However, the existing method will still be applied for non-resident Bangladeshis and foreign investors, Bangladeshi nationals have the option to choose between the two methods.
The new system will cut down the processing time of an initial public offering (IPO) to three weeks from the current requirement of 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 will participate in the IPO subscription.
The public subscription will remain open till October 2 for resident Bangladeshi and it will continue October 11 for non-resident Bangladeshi (NRB).
Using the fixed price method, the textile company is set to float 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 1,050 million from public.
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 BDT 41.14 after revaluation, according to IPO prospectus.
ICB Capital Management is acting as issue manager of Hamid Fabrics’s initial public offering (IPO), the proceedings from which would be used to service Hamid Fabrics’ existing bank loans and fund business expansion.
The stock market regulator – Bangladesh Securities and Exchange Commission (BSEC) – approved the IPO proposal of Hamid Fabrics on August 12.
BBN/AS-28Sept14-11:20am (BST)