The company will use the public money for business expansion, equipment purchase and bank loan repayment
The Bangladesh Securities and Exchange Commission (BSEC) Wednesday approved Mir Akhter Hossain Ltd, one of the largest construction and engineering companies of the country, 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.
Mir Akhter will issue more than 2 crore shares under the book-building method of IPO. The BSEC approved Mir Akhter to float the shares during a meeting Wednesday.
On 13 August this year, the stock market regulator allowed Mir Akhter to determine the cut-off price of its shares through a bidding by eligible investors – a requirement for going public under the book-building method.
The cut-off price of Mir Akhter shares was set 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 1 crore shares, including 10% shares allocated for the non-resident Bangladeshis. Meantime, the remaining shares have been allocated for the eligible investors who will have to buy the stocks at their respective proposed prices.
In the 2018-19 fiscal year, Mir Akhtar'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 last five years was Tk6.21, net asset value per share was Tk34.71, including re-evaluated reserve, and Tk33.63, excluding the same.
Established in 1968, Mir Akhter Hossain Ltd is implementing various infrastructure development projects across the country. The company is constructing roads, bridges, highways, railroads, five-star hotels, power plants, buildings and factories. Mir Akhtar currently has 34 ongoing projects.