The stock market regulator has allowed Mir Akhter Hossain Limited to determine the cut-off price of its shares through a bidding by eligible investors–a requirement for going public under the book-building method.
The Bangladesh Securities and Exchange Commission (BSEC) came up with the approval at a meeting on Thursday.
Mir Akhter, which is engaged in the real estate sector, wants to raise Tk125 crore from the stock market through an initial public offering (IPO) for expanding its business.
The company will use the amount to buy machineries, repay bank loans and cater expenses for the IPO process.
Only institutional investors can participate to explore the cut-off price of the company's shares under the electronic bidding process. Besides, the price will be set based on the bids submitted by investors.
Although institutional investors are supposed to purchase shares of that company at the cut-off price, individual investors get the scope to purchase the shares at 10 percent discounted price through the IPO.
According to the audited financial statement, as of June 30, 2019, the company's earnings per share was Tk6.32, net asset value per share Tk34.71, including re-evaluated reserve and Tk33.63 excluding re-evaluated reserve.
Besides, the company's weighted average earnings per share was Tk6.21. IDLC Investments is the issue manager for the company's IPO.
Meanwhile, Pragati Life Insurance, which is listed on the share market, also received approval from the securities regulator to issue right shares at Tk15 including a premium of Tk5 per share.
The company is issuing right shares at 1R:1, which means one right share issued against one ordinary share. The company will raise Tk23 crore through issuing right shares to strengthen its paid-up capital as per the insurance law.
From this fund, the company will invest in the government treasury bond, banks and financial institutions as fixed deposits.
LankaBangla Investment Ltd is the issue manager for the company's right issue.