The Bangladesh Securities and Exchange Commission on Tuesday allowed Delta Hospital Ltd to explore the cut-off price of its shares under the book building method of Initial Public Offering (IPO).
When a company seeks a premium over its face value to go for IPO, institutional investors bid for setting a price for them, and general investors buy the shares at 10 percent lower than the cut-off price.
The commission said only institutional investors with a minimum of Tk1 crore investment in stocks can participate in the bidding.
The company wants to raise Tk50 crore to expand business, repay bank loans and pay for IPO processing expenses.
The company will utilise Tk31.09 crore to procure equipment, Tk16.66 crore to repay bank loans and Tk2.25 crore to meet the IPO expenses.
According to the company's financial statement of June 30 last year, the company's net asset value per share was Tk45.84 after revaluation, and Tk16.62 before revaluation.
At the same time, its earnings per share was Tk2.10 and weighted average earnings per share was Tk1.91.
Prime Finance Capital Management Ltd is the issue manager and ICB Capital Management Ltd is registrar to the issue.
Delta Hospital was incorporated as a private limited company on June 4, 1987 and started commercial business on June 4, 1989.
The company is engaged in general and cancer medical treatment in the private sector of the country.
It provides a full range of radiation therapy, diagnostic facilities, chemotherapy and surgery with consultants, pathologists, surgeons, medical oncologists, radiation oncologists and other physicians.