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BSEC approves ADN Telecom IPO, Tk83 cr impact fund

  • Published at 12:19 am September 4th, 2019
File photo of Bangladesh Securities and Exchange Commission Office in Dhaka Syed Zakir Hossain/Dhaka Tribune

Stocks market regulator gave the approval at a commission meeting held at its office

The Bangladesh Securities and Exchange Commission (BSEC) yesterday approved the prospectus for the Initial Public Offering (IPO) of ADN Telecom Limited to raise Tk57 crore in public funds through the book building method.

Stocks market regulator gave the approval at a commission meeting held at its office. BSEC Chairman M Khairul Hossain presided over the meeting.

The commission meeting also approved an impact fund of Tk83 crore of  Build Bangladesh Social Entrepreneurs Fund. The tenure of the fund is 10 years.

The cut-off price on the Initial Public Offering of ADN Telecom was set at Tk27 per share, as the company aims to raise Tk57 crore from the capital market. 

As per the book building method, eligible institutional investors took part in the price discovery of the shares by bidding over a fixed time.

The BSEC on August 15 last year allowed ADN Telecom to conduct eligible institutional investors bidding under the book building method of public issue rules.

The commission, under the public issue rules, decided to offer ADN’s IPO shares to general and non-resident Bangladeshi investors at 10% discount of cut-off price which was set by the bidding of the institutional investors.

As per the bidding of EIIs, the cut-off price of the company’s shares stood at Tk30 and so shares would be allotted to general investors along with NRB investors at Tk27 each.

Under the public issue rules, of the 1.97 crore IPO shares of ADN, 1.18 crore will be allocated to EIIs, 79.16 lakh shares will be offered to the general and NRB investors.

ADN Telecom will use the IPO proceeds in infrastructure development, installing data centre, paying bank loans and meeting the IPO expenses.

As per the entity’s audited financial statements for the year ended on June 30, 2018, the company’s net asset value per share and basic earnings per share were Tk18.80 and Tk2.67 respectively.

ICB Capital Management Limited is the issue manager of the company’s IPO.

The impact fund’s sponsor is JC Management Company, Impress Capital fund manager and Green Delta Insurance its trustee.

The fund basically invest in the agriculture and food processing, health and security, recyclable and refined energy, information and communication technology, sustainable manufacture sector, education, engineering and tourism for the social and environmental development.