Index Agro IPO lottery draw Monday

Index Agro Industries Ltd is set to hold its initial public offering (IPO) lottery draw on Monday (22 March) as there had been oversubscription by mass investors.

The poultry and fish feed maker kept its IPO subscriptions for general investors open over 22-28 February.

On 23 December last year, the company received the nod from the Bangladesh Securities and Exchange Commission (BSEC) to issue shares at Tk50 each through an IPO.

Earlier, eligible institutional investors (EIIs) through their bidding set the cut-off price of Index Agro shares at Tk62 each.

Half of the primary shares in an IPO under book building method go to the EIIs, and remaining half is offered to the general public at an at least 10% discount, though if the issuer company wants they can widen the discounts, according to the current Public Issue Rules.

Index Agro is collecting Tk50 crore from investors to expand its business.

The IPO fund will be used to construct buildings, accomplish other civil work, procure and set up new machinery and equipment, and meet the expenditures of the IPO process.

According to the audited financial statement as of 30 June 2019, the company's consolidated earnings per share (EPS) was Tk7.07 and weighted average EPS was Tk5.60.

Its 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.

Index Agro was incorporated on 13 September 2000 and started 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% of shares.

X-Ceramics Ltd manufactures ceramic tiles.