Dhaka, Bangladesh (BBN)- Initial Public Offering (IPO) lottery of Ratanpur Steel Re-rolling Mills (RSRM) was held on Thursday at the Institution of Engineers in Dhaka for allocating shares among the investors.
Bangladesh University of Engineering and Technology (BUET) conducted the IPO lottery of the RSRM. The chairman of RSRM Maksudur Rahman, chief financial officer Obaydur Rahman, representatives of Dhaka Stock Exchange, Chittagong Stock Exchange and Central Depository Bangladesh Ltd (CDBL), issue manager, were present.
The IPO lottery result was also published in DSE, CSE and RSRM websites.
Ratanpur Steel Re-rolling Mills received around BDT 5.89 billion against public issue of IPO of BDT 360 million, which is over subscribed by 5.89 times.
Of the total subscription received, from general investors BDT 3.83 billion, affected small investors BDT 581.72 million, non-resident Bangladeshis BDT 408.36 million and mutual fund BDT 1.06 billion.
The public subscription of Ratanpur Steel Re-rolling Mills (RSRM) was held on July 13 to July 17 for resident Bangladeshis and July 26 for non-resident Bangladeshis (NRBs).
The RSRM floated 25 million ordinary shares at an offer price of BDT 40, including a premium of BDT 30 for each ten taka share, using fixed price method and raised a fund worth BDT 1.0 billion.
The company will use the IPO fund to boost the capital base, repay bank loans and bear the expenses of IPO proceedings, the IPO prospectus said.
Considering the weighted average of last five years ended on June 30, 2013, the company’s consolidated earnings per share (EPS) and net asset value (NAV) are of BDT 4.58 and BDT 53.69 respectively.
The Janata Capital and Investment and Trust Bank Investment have been appointed the manager to the issue of the RSRM.
The securities regulator — BSEC approved the IPO proposal of RSRM on May 7, this year.
BBN/SSR/AD-15Aug14-11:27 am (BST)
