The securities regulator has recently allowed Index Agro Industries Limited to determine the cut-off price of its shares through eligible investors' bidding – a requirement for going public under the book-building method.
The Bangladesh Securities and Exchange Commission (BSEC) gave the approval at a meeting held at its office on Thursday.
Only institutional investors can participate to explore the cut-off price of the company's shares under the electronic bidding process. Besides, the cut-off price will be set based on the bids submitted by the investors.
Institutional investors are supposed to purchase the company's shares at the cut-off price, whereas individual investors can buy the shares at a 10% discounted price through IPO.
Index Agro Industries Limited intends to raise Tk50 crore through the IPO.
The company will use the IPO proceeds to acquire machineries and equipment, construct buildings and civil works, and cater expenditures for the IPO process.
According to the audited financial statement as of June 30, 2019, the company's consolidated earnings per share (EPS) was Tk7.07. Its weighted average EPS was Tk5.60.
The company's net asset value per share was Tk45.03 including re-evaluated reserve, and Tk44.06 excluding re-evaluated reserve.
AFC Capital Limited and EBL Investments Limited are the issue managers for the company's IPO.
The principal activities of Index Agro Industries Ltd are manufacturing and marketing poultry feed, fish feed and producing day-old chicks.
Index Agro Industries Limited was incorporated in Bangladesh on September 13, 2000 and started its commercial operation on July 01, 2004.
It has no subsidiary company but has an associate company named X-Ceramics Ltd where the issuer holds 24.39% shares. X-Ceramics Ltd is engaged in manufacturing ceramic tiles in Bangladesh.