Mir Akhter Hossain Limited, one of the largest construction and engineering firms of the country, is going to start its Initial Public Offering (IPO) subscription from 24 December this year.
Investors can apply for primary shares of the company until 30 December.
Established in 1968, Mir Akhter Hossain Ltd is implementing various infrastructure development projects across the country, constructing roads, bridges, highways, railroads, five-star hotels, power plants and factories.
On 5 November, Bangladesh Securities and Exchange Commission (BSEC) approved the company to raise Tk125 crore through an initial public offering (IPO).
The company will use the money for business expansion, equipment purchase and repayment of bank loans.
From the IPO fund, the company will use Tk50.30 crore for purchasing heavy equipment, Tk12.70 crore for aggregate processing plant, Tk4.67 crore for asphalt plant, Tk3.74 crore for concrete batching plant, Tk10.08 crore for construction of warehouse and workshop for equipment maintenance and refurbishment, and Tk40 crore for repayment of bank loans.
On 13 August this year, the stock market regulator allowed the company to determine the cut-off price of its shares through bidding by eligible investors – a requirement for going public under the book-building method.
The cut-off price was fixed at Tk60 each after the bidding. The general investors will get a 10% discount on the cut-off price to buy it at Tk54 each.
General investors will be offered more than one crore shares with 10% allocated for the non-resident Bangladeshis.
The remaining shares of the company would be allocated for eligible investors at their respective proposed prices.
In the 2018-19 fiscal year, Mir Akhter's total revenue was Tk426.70 crore and the net profit was Tk63.24 crore. In the 2017-18 fiscal year, the company's profit stood at Tk61.87 crore.
According to the audited financial statements of Mir Akhter as of 30 June 2019, the company's weighted average earnings per share in the last five years was Tk6.21, net asset value per share was Tk34.71, including re-evaluated reserve.
Mir Akhtar currently is implementing 34 development projects. IDLC Investments is the issue manager of the company.