The cut-off price of shares in Mir Akhter Hossain Limited has been set at Tk60 each after bidding by eligible institutional investors.
As per the book building method, eligible institutional investors took part in the price discovery.
At the end of the bidding process, with a proposed rate between Tk14 and Tk98, the cut-off price was set at Tk60, according to the Dhaka Stock Exchange (DSE).
According to the rules of the book building method, shares will be sold to general investors at a 10% discount on the cut-off price.
Institutional investors will be offered 50% of the shares at the cut-off price. The remaining 50% will be offered to other investors, including general investors and non-resident Bangladeshis.
The construction and engineering company wants to raise Tk125 crore through an IPO for expanding its business.
It will use the IPO proceeds to buy machinery, repay bank loans and meet the expenses for the IPO process.
Earlier, the Bangladesh Securities and Exchange Commission (BSEC) had allowed the company to determine the cut-off price of its shares through bidding by eligible investors.
Of the planned proceeds, Tk49 crore will be used to buy equipment, Tk12 crore to construct a building adjacent to its main building, Tk10 crore for two plants, Tk10.5 crore to build a warehouse and workshop, Tk40 crore to repay bank loans and the rest for covering IPO expenses.
According to the company’s audited financial statements for the year ending on June 30, 2019, its net asset value per share and weighted average earnings per share were Tk34.71 and Tk3.32 respectively, while the weighted average of earnings per share (EPS) was Tk6.21.
IDLC Investments acts as the issue manager of the company’s IPO.
Mir Akhter Hossain Ltd (Mir Akhter) started its journey in the construction industry in 1968.
