One of Bangladesh's leading construction companies, Mir Akhter Hossain Ltd, has rescheduled the date of its initial public offering (IPO) due to a technical issue at the Dhaka Stock Exchange (DSE).
Sources at the DSE said the construction company changed its bidding schedule to October 4-7 from the first date September 27-30 to set the share price for the IPO.
The bidding by eligible investors is a requirement for going public under the book-building method.
The construction and engineering company wants to raise Tk125 crore through the IPO for business expansion. It will use the IPO process to buy machinery, 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 may participate in the bidding to explore the cut-off price of the company's shares through the electronic bidding process. Additionally, 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 rate through the IPO.
The company that started its journey in 1968 is mainly engaged in the real estate business.
According to the audited financial statement, as of June 30, 2019, the company's earnings per share (EPS) was Tk6.32. Meanwhile, its net asset value per share was Tk34.71, including re-evaluated reserve, and Tk33.63, excluding re-evaluated reserve.
Further, the company's weighted average earnings per share was Tk6.21. IDLC Investments is the issue manager for the company's IPO.