Dhaka, Bangladesh (BBN)-The initial public offering subscription of Olympic Accessories Ltd oversubscribed by more than 48 times as the company’s IPO subscription ended on May 2.
The company’s total IPO subscription stood about BDT 9.70 billion against public issue of BDT 200 million, according to primary data from the Chittagong Stock Exchange.
Of the total subscription amount – BDT 5.64 billion was taken from banks, BDT 3.38 billion from DSE stockbrokers, BDT 582.03 million from CSE stockbrokers, BDT 69.68 million from merchant bankers and BDT 28.56 million from Non-Resident Bangladeshi (NRB) up to 23 April, the port city data showed.
IPO subscription of the company was held on April 19 to April 23 for resident Bangladeshis while it was continued till May 2 for NRBs.
IPO lottery is expected to hold end of this month at the Institution of Engineers, Bangladesh in Dhaka to allocate shares among the investors, officials said.
Bangladesh Securities and Exchange Commission approved the IPO proposal on February 25 to raise Tk 200 million from the people.
Under the fixed price method, the company floated 20 million ordinary shares at an offer price of Tk 10 each and raised the said amount.
The company will use the funds raised through the IPO for construction of a new factory building, purchasing machinery, and meeting up IPO expenses.
The company’s earnings per share (EPS) as of June 2014 stood at BDT 1.43 with net asset value (NAV) of BDT 16.34 per share.
PLFS Investments and CAPM Advisory are the IPO’s issue managers
The company is engaged in manufacturing, processing, printing, cutting, sealing and assembling all kinds of carton, poly bag, hanger, elastic, draw cord, back board, neck board, ribbon, gum tape, label, twill tape, interlining, bar code and hangtag, according to its website.