The company will raise Tk50 crore from the capital market to expand its business
Subscription of the initial public offering (IPO) of poultry and fish feed manufacturer - Index Agro Industries Limited - will begin on 22 February (Monday).
General investors can apply to buy the company's primary shares until 28 February. They will get a 20% discount on the cut-off price of the shares.
Eligible institutional investors through bidding set the cut-off price of the primary shares at Tk62 each.
On 23 December last year, the company received the nod from the Bangladesh Securities and Exchange Commission (BSEC) to issue shares at Tk50 each through an IPO.
It will raise Tk50 crore from the capital market to expand its business.
The fund will be used to construct buildings, execute other civil work, acquire new machinery and equipment, and meet the expenditures of the IPO process.
On 10 September last year, the securities regulator allowed Index Agro to determine the cut-off price of its shares through eligible investors' bidding under the book-building method.
The bidding reflected a diversified view of eligible investors on the company's valuation. The bids went as high as Tk100 and as low as Tk11 for each primary share with a face value of Tk10.
According to the audited financial statement as of 30 June 2019, the company's consolidated earnings per share (EPS) was Tk7.07 and weighted average EPS was Tk5.60.
Its net asset value per share was Tk45.03 including re-evaluated reserve and Tk44.06 excluding re-evaluated reserve.
AFC Capital Limited and EBL Investments Limited are the issue managers for the company's IPO.
Index Agro was incorporated on 13 September 2000 and started commercial operation on 1 July 2004.
It has no subsidiary company but has an associate company named X-Ceramics Ltd where the issuer holds 24.39% of shares.
X-Ceramics Ltd manufactures ceramic tiles.