Dhaka, Bangladesh (BBN)- The initial public offering (IPO) subscription of IFAD Autos Limited (IAL) began on Sunday, officials said.
In addition to the existing IPO application process, Bangladeshi nationals can also apply through their stockbroker/merchant bankers. However, non-resident Bangladeshis and foreign investors have to apply through the existing method.
The public subscription of IFAD Autos will remain open till November 27 for resident Bangladeshi and it will continue till December 6 for non-resident Bangladeshi (NRBs).
The securities regulator – Bangladesh Securities & Exchange Commission (BSEC) gave the green light to IFAD Autos to raise BDT 637.5 million from public on September 18.
The automobile dealer set to float 21.25 million ordinary shares of BDT 10 each at an offer price of BDT 30, including BDT 20 as premium. A market lot is 200 shares
As per financial statement for the year ended on June 30, 2014, the company’s earnings per share (EPS) stood at BDT 5.16 and net asset value (NAV) per share at BDT 44.12.
The proceeds from the IPO will be used for capital expenditure for assembling & body building units, bank loan repayment and IPO expenses.
Banco Finance and Investment and Alpha Capital Management will manage the initial public offering of IFAD Autos.
According to the company’s IPO prospectus, the principal activity and operation of IFAD Autos is importing, marketing, and body building of different models of Ashok Leyland’s vehicles in Bangladesh through its own marketing staffs, dealers and selling agents in different districts across the country.
BBN/SSR/AD-11Nov14-11:29 am (BST)