Dhaka, Bangladesh (BBN)-Initial Public Offering (IPO) lottery of Khan Brothers PP Woven Bag Industries will be held Thursday to allocate shares among the investors, officials said.
The lottery will be held at 10:30am at the Seminar Hall of the Institution of Engineers (IEB) in Dhaka.
Bangladesh University of Engineering and Technology (BUET) will conduct IPO lottery.
The public subscription of the company was held between August 24 to August 28 for resident Bangladeshis and September 6 for non-resident Bangladeshis (NRBs).
Khan Brothers PP Woven Bag Industries, a sister concern of Khan Broker’s Group, floated 20 million ordinary shares at an offer price of BDT 10 and raise a fund worth BDT 200 million from public, using the fixed price method. A market lot is 500 shares.
Total subscription received BDT 8.73 billion against public issue of BDT 200 million, meaning over subscribed by 43.63 times.
The company will use the IPO proceeds for expansion of business activities 81.29 percent, repayment of long-term loan 10.50 percent and working capital purpose 8.21 percent, said the company’s prospectus.
Considering the weighted average of last five years and the audited financial statement ended on June 30, 2013, the company’s earnings per share (EPS) and net asset value are of BDT 0.87 and BDT 14.69 respectively.
AFC Capital acted as issue manager of the Khan Brothers PP Woven’s IPO.
The stock market regulator – Bangladesh Securities and Exchange Commission (BSEC) – approved the IPO proposal of the company on June 24 this year.
BBN/BB/ANS-24Sept14-8:15pm (BST)