According to the rules of the book building method, the shares will be sold to general investors at 10% discount or at Tk10 per share
The cut-off price of each share in Delta Hospital Limited has been set at Tk11 after bidding by eligible institutional investors.
As per the book building method, eligible institutional investors took part in the price discovery process of the shares by bidding within 72 hours.
At the end of the bidding process, with a proposed rate between Tk46 and Tk11, the cut-off price was set at Tk11.
According to the rules of the book building method, the shares will be sold to general investors at 10% discount or at Tk10 per share.
The Bangladesh Securities and Exchange Commission (BSEC) in February allowed the company to explore its cut-off price.
As per the regulatory approval, the company will raise Tk50 crore using the book building method to expand its business and repay bank loans.
As per the revised public issue rules, eligible investors and mutual funds are allowed to purchase 40% and 10% shares respectively at the cut-off price.
General public and non-resident Bangladeshis (NRBs) are allowed to purchase 40% and 10% shares respectively at 10% discount on the cut-off price.
According to the entity’s audited financial statements for the year ending June 30, 2019, the company’s net asset value per share and weighted average earnings per share were Tk45.84 and Tk2.10 respectively.
Prime Finance Capital Management Ltd is the issue manager and the ICB Capital Management Limited acts as the registrar of the company’s IPO.
Delta Hospital provides general medical treatments and is widely popular for cancer care in the private sector medical services in the country.