Three companies will open their IPO (initial public offering) subscription in February to raise an aggregate amount of capital worth Tk 1.86 billion from the country’s capital market.
Of these companies, NRB Commercial Bank, a fourth general commercial bank’s IPO subscription will be opened on Wednesday.
After September 22, 2008, the country’s capital market is getting a bank through enlisting this bank.
According to information of Dhaka Stock Exchange (DSE), the IPO subscription of NRB Commercial Bank will start on February 3 and to be continued till February 9.
Under the fixed price method, the bank will raise a capital worth Tk 1.2 billion issuing 120 million shares at an offer price of Tk 10 each.
The company will utilise the IPO proceeds to purchase government securities, invest in the secondary market and cater the IPO expense.
As per the half yearly audited financial statement for the period ended on June 30, 2020, the Bank’s net asset value (NAV) per share (without revaluation) stood at Tk 13.86. For the same period, the bank reported its weighted average earnings per share (EPS) of five years at Tk 1.55.
Desh General Insurance
The IPO subscription of Desh General Insurance Company will open on February 14 and to be continued till February 18.
Under the fixed price method, the company will raise a capital worth Tk 160 million issuing 16 million shares at an offer price of Tk 10 each.
The general insurer will utilise the IPO fund to invest in the capital market, fixed deposits, treasury bonds along with catering IPO related expenses.
According to the audited financial report for the year ending on 31 December 2019, the EPS of Desh General Insurance Company stood at Tk 1.36 while its NAV per share was Tk 11.62, excluding revaluation.
Index Agro Industries
The public subscription of Index Agro Industries will open on February 22 and to be continued till February 28.
As per the regulatory approval, the company will raise a capital worth Tk 500 million from the capital market under the book-building method.
The cut-off price of the shares of Index Agro Industries was fixed at Tk 62 each through electronic bidding.
Under the book building method, the eligible investors will buy 50 per cent or worth Tk 250 million shares at the respective prices offered at the bidding.
The remaining 50 per cent shares will be issued through IPO to general investors including non-resident Bangladeshis at a 10 per cent discount on the cut-off price.
The company will use the IPO proceeds for the purpose of constructing buildings, purchasing machinery and bearing the IPO related expenses.