A 72-hour bidding to fix the share price for an initial public offering (IPO) of Mir Akhter Hossain Ltd will begin on September 27.
The bidding – a requirement for going public under the book-building method – will take place between 5pm on September 27 and 5pm on September 30 on the Dhaka Stock Exchange, said sources.
The company that started its journey in 1968 is engaged mainly in real estate business.
The construction and engineering company wants to raise Tk125 crore through an IPO for expanding its business.
It will use the IPO proceeds to buy machineries, repay bank loans and cater expenses for the IPO process.
The Bangladesh Securities and Exchange Commission (BSEC) had earlier allowed the company to determine the cut-off price of its shares through bidding by eligible investors.
Only institutional investors can participate in the bidding to explore the cut-off price of the company's shares under the electronic bidding process. Besides, the price will be set based on bids submitted by investors.
Although institutional investors are supposed to purchase shares of the company at the cut-off price, individual investors will get an opportunity to purchase the shares at a 10% 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, while its net asset value per share was 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.