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ADN Telecom gets BSEC nod to discover IPO cut-off price

  • Published at 01:44 am August 15th, 2018
The Bangladesh Securities and Exchange Commission office in Dhaka Syed Zakir Hossain/Dhaka Tribune

The commission gave the approval at a meeting presided by its chairman M Khairul Hossain on Tuesday

Bangladesh Securities and Exchange Commission (BSEC) has allowed ADN Telecom Limited to discover the cut-off price of its shares by the book building method in order to raise Tk57 crore from the capital markets through an initial public offering.

The commission gave the approval at a meeting presided by its chairman M Khairul Hossain on Tuesday.

With the participation of institutional investors, the selling price of the company’s shares will be fixed through the bidding process.

With Tk44.86 million in paid-up capital, ADN Telecom has a strong reputation as a front-line service provider in the sector, providing customers at home and abroad with data, voice, and internet services. The road show for the company’s IPO was held at Le Méridien in Dhaka on October 19, 2017.

According to the entity’s audited financial statements for the year ending June 30, 2017, the company’s net asset value per share and weighted average earnings per share were Tk16.13 and Tk2.52 respectively.

According to ADN Telecom’s prospectus, the company’s net profit has almost doubled in the past four years to Tk10.59 crore in fiscal year 2016-17. Return on assets, an indicator of how the company is profitable relative to its total assets, rose to 8.56% in fiscal year 2016-17 from 8.21% in the previous year – proving that the company’s management has efficiently used its assets to generate earnings.

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

ADN Telecom will use the initial public offering (IPO) proceeds to develop their infrastructure, install a data centre, return bank loans, and meet IPO expenses.

During the meeting, the commission also fined Dynamic Securities Consultant Limited Tk2 lakh as the regulator found deficiencies in the accounts of its consolidated customers, which broke securities rules.

BSEC at the meeting also decided to issue a warning letter to United Airways Limited as the company failed to submit a number of financial statements in 2016 and 2017 on due time.