The company will raise Tk57 crore from the share market through IPO Book Building method
ADN Telecom has announced the dates for the subscription of its initial public offering (IPO). Investors can submit their applications to buy the shares of the company from November 4 to November 11.
The company will raise Tk57 crore from the share market through IPO Book Building method.
It will collect Tk30 crore from eligible investors by offering 98,95,833 shares with a face value of Tk30 each. The company will collect Tk6 crore by selling 19,79,167 shares to mutual fund and Collective Investment Scheme (CIS) at the same price.
It will collect another Tk21 crore by selling 79,16,666 shares to general and non-resident investors at a rate of Tk27 per share.
The shares have already been sold out to the eligible investors. The dates for IPO application have been announced for selling shares to general investors.
Investors can apply from their Beneficiary Owners (BO) accounts for a lot of 100 shares of the company for Tk2,700. They will have to deposit the money through the brokerage house concerned to apply for the shares.
Earlier, a bidding was held for fixing the share price through book building method. There, the eligible investors fixed the cut off price of the share of the company at Tk30. As per law the general investors can buy the share at Tk27 which is 10 percent less than the cut off price.
The company will spend Tk32.67 crore for the development of its physical infrastructure, Tk9.32 crore for setting up a data centre, Tk12.06 crore for repaying bank loans and Tk2.95 crore for IPO expenditure.
The ICB Capital Management will be in-charge of the Issue management of the company and the Roots Investments Ltd will act as the Registrar to the Issue.
In three quarters of the accounting year 2018-19 (July to March) the ADN Telecom's Earnings Per Share (EPS) was Tk1.81. The Net Asset Value Per Share (NAVPS) was Tk20.01.
The ADN Telecom gave a six percent cash dividend to its shareholders in the accounting year that ended on June 30, 2018.
The ADN Telecom has recently signed a bilateral agreement with Bangladesh Communication Satellite Company Ltd (BCSCL). Under the agreement the company will use VSAT technology through Bangabandhu Satellite-1 and will provide digital connections to the remote island areas.
It will also provide environment-friendly renewable multimedia desktop computers and Wi-Fi internet connections supported by solar energy.
The ADN Telecom's Company Secretary Md Monir Hossain told The Business Standard that the company has ventured into IPO to cut financial cost and ensure corporate good governance.
He also said the company's agreement with the Bangabandhu Satellite company will help expand its area of business and will have a positive impact on its profit.