The stock market regulator on Wednesday canceled the proposal of initial public offering (IPO) of Delta Hospital Limited, after the company had sought cancelation over low pricing by the institutional investors.
The investors set the cut-off price of its shares at Tk11 each.
The decision was taken at a commission meeting of the Bangladesh Securities and Exchange Commission (BSEC) held at its headquarters. BSEC Chairman Prof Shibli Rubayat Ul Islam presided over the meeting, according to a media statement of the commission.
Earlier, Delta Hospital on June 2 requested the BSEC to cancel its IPO as low pricing by the institutional investors set the cut-off price of its shares at Tk11 each.
The face value of the company’s shares is Tk 10 each.
The BSEC has instructed the stock exchange to return the money deposited by the eligible investors in the bidding within next 5 working days.
The Commission 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.
