Mir Akter Hossain (MAH), one of the country’s largest and oldest construction firms, is expected to go public soon.
The company, an offshoot of business conglomerate Mir Group, will file a draft prospectus with the Bangladesh Securities and Exchange Commission shortly.
The MAH is expected to mop up Tk100 crore from the market, which will be the first such company to be listed with the stock exchanges but subject to approval from the securities regulator.
Having over five decades of experience in the construction arena, the company plans to add big and sophisticated technology through new plants over the next couple of years. The funds will be used for this purpose.
MAH Managing Director Mir Nasir Hossain told the Dhaka Tribune that the company plans to float an IPO for around Tk100 crore.
“With the IPO fund, the company will purchase latest and sophisticated construction technology to make its foot stronger in the country’s infrastructure development,” he said.
“Actually we planned to list two or three concerns of our group since 2009. But the depressed market situation discouraged us to do so. Moreover, the regulator was very slow to approve an IPO,” he said, replying to a question why one of the oldest business group coming into the capital market so late. “Now we are expecting fair price of the IPO.”
The present annual turnover of the company is US$43m (around Tk350 crore), he said adding that the company so far reinvested from its profits for expanding business.
To this end, the company recently appointed IDLC Investments Limited for acting as its corporate advisor and issue manager for the IPO.
After a long process of organisational development, the company started its activities in the year 1968 under its present managing director.
Since its inception the company successfully executed diverse projects like construction of international standard highways and bridges, factory buildings of sugar and textile mills, as well as pharmaceutical complexes, functional buildings, international standard hotel buildings, auditoriums, academies and warehouses, food and fertiliser warehouses, railway tracks, power plant, overhead tanks, discharge channels and so forth.
“We have made every construction work taking earthquake into consideration,” Mir Nasir said, replying to a question.
The company executed several roads, highways and bridges of international standard both individually and forming joint venture with internationally reputed construction companies like FF Cruz & Co. Inc. of Philippines, Samwhan Corporation of Korea as well as China Harbour Engineering Company and HH Consortium of China.
It has successfully executed prestigious projects like five-star hotel Sheraton, five-star hotel Radisson in Dhaka, 18-story Islami Bank Tower of Islami Bank Bangladesh Ltd in Dilkusha, Dhaka, US Embassy Chancery Building, American International School, British High Commissioner’s New Residence and British High Commission’s Amenities Centre in Baridhara.
The company attaches importance to the co-operation of multinational companies and executed several projects of international standard by forming joint venture with internationally reputed construction companies like FF Cruz & Co. Inc. of Philippines, Samwhan Corporation of Korea, China Harbour Engineering Company & HH Consortium of China and others.