Poultry and fish feed maker, Index Agro Industries Ltd, has received the nod from the Bangladesh Securities and Exchange Commission (BSEC) to issue its shares at Tk50 each through initial public offering (IPO).
On Wednesday, the securities regulator gave the approval at a meeting held at its office. The company will raise Tk50 crore from the capital market for expanding its business.
The fund will be used for constructing buildings, executing other civil work alongside acquiring new machinery and equipment and meeting the expenditures of the IPO process.
Earlier, on 10 September, the securities regulator allowed the company to determine the cut-off price of its shares through eligible investors' bidding under the book-building method.
Eligible institutional (EI) investors through their bidding, have set the cut-off price for the company's primary shares at Tk62 each.
The bidding reflected a diversified view of eligible investors on the company's valuation. The bids went as high as Tk100 and as low as Tk11 for each primary share with a face value of Tk10.
Where the general investors will buy IPO shares at a 20% discount of Tk50 each.
According to the audited financial statement as of 30 June 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 (NAV) 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.
Index Agro Industries Limited was incorporated in Bangladesh on 13 September 2000 and started its commercial operation on 1 July 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.