ADN Telecom Limited will make on Monday its debut trading on Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) under ‘N’ category, officials have said.
The company has raised Tk57 crore by offloading 150 million ordinary shares under the initial public offering (IPO) in the book building method.
The Bangladesh Securities and Exchange Commission (BSEC) last September approved the prospectus for the IPO of ADN Telecom.
The cut-off price on the initial public offering of ADN Telecom was set at Tk27 per share, as the company aims to raise Tk57 crore from the capital market.
In the book building method, eligible institutional investors take part in the price discovery of the shares by bidding over a fixed time.
The BSEC on August 15 last year allowed ADN Telecom to conduct eligible institutional investors (EII) bidding under the book building method of public issue rules.
The commission, under the public issue rules, decided to offer ADN’s IPO shares to general and non-resident Bangladeshi investors at 10% discount on the cut-off price which was set by the bidding of the institutional investors.
As per the bidding of EIIs, the cut-off price of the company’s shares stood at Tk30 and so the shares will be made available to general investors along with NRB investors at Tk27 each.
Under the public issue rules, of the 1.97 crore IPO shares of ADN, 1.18 crore were allocated to EIIs, and 79.16 lakh to the general and NRB investors.
ADN Telecom will use the IPO proceeds on its infrastructure development, instilling data centre, paying back bank loans and meeting the IPO expenses.
As per the company’s audited financial statements for the year that ended on June 30, 2018, the company’s net asset value per share and basic earnings per share was Tk18.80 and Tk2.67 respectively.
ICB Capital Management Limited is the issue manager of the company’s IPO.
ADN Telecom is the second company, which will make debut under the newly-introduced circuit breaker system.
