As per the book building method, eligible institutional investors took part in the price discovery of the shares by bidding from Monday to Thursday
The cut-off price on the Initial Public Offering (IPO) of ADN Telecom Ltd has been set at Tk30 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 from Monday to Thursday.
With a proposed rate between Tk45 and Tk30, the bidding process ended with the cut-off price set at Tk30. A total of 600 bidders participated in the process.
According to the rules of the book building method, shares will be sold to general investors at a 10% discount, amounting to Tk21 per share.
The Bangladesh Securities and Exchange Commission (BSEC) approved the book building method to determine the cut-off price of ADN Telecom, on August 14.
Under the method, the selling price of shares is set through bidding by eligible institutional investors.
After setting the cut-off price, interested institutional investors have to pay the set amount for shares they are keen to buy, while general investors get the shares at a 10% discount.
ADN Telecom offers wide range of data, voice, and internet services to its local and international clients. With Tk4.486 crore in paid-up capital, ADN Telecom has a strong reputation as a front-line service provider in the sector.