Robi IPO shares 10 times oversubscribed by EIs

621 eligible investors apply for shares worth Tk 1,587cr

Staff Correspondent | Published: 22:27, Nov 26,2020


Eligible investors have placed orders for Robi Axiata Limited’s initial public offering shares worth Tk 1,587 crore against 15.59 crore shares worth Tk 155.96 crore allocated for them.

According to the Dhaka Stock Exchange data, 621 eligible investors submitted applications for the IPO shares of Robi, the second largest mobile operator in the country.

The subscription for shares of Robi Axiata by eligible investors through the electronic subscription system under the fixed price method of the stock exchanges started on November 17 and continued till November 23. The IPO offer was distributed at Tk 10 a share.

Of the 52.37 crore IPO shares, 38.77 crore shares would be issued to retail and institutional investors, and 13.61 crore shares would be issued to its employees.

Of the 38.77 crore shares, eligible investors would be allotted 40 per cent and general public including non-resident Bangladeshi would get 60 per cent as per the public issue rules.

There are around 1,200 registered eligible investors on the country’s capital market.

According to the Bangladesh Securities and Exchange Commission public issue rules, eligible investors are merchant bankers, asset managers, mutual funds, stock-dealers, banks, financial institutions, insurance companies, fund managers, alternative investment funds, foreign investors having account with any security custodian registered with the commission, recognised provident funds, approved pension funds and approved gratuity funds.

However, the eligible investors including institutional ones have to invest Tk 1 crore in the capital market five days before the subscription of a company’s IPO starts to be eligible for the company’s IPO subscription.

Earlier on September 23, the BSEC approved the Tk 523.79-crore IPO proposal of Robi Axiata.

IDLC Investments Limited is the issue manager of the company’s IPO.

As per the entity’s audited financial statements for the year ended on June 30, 2019, Robi’s net asset value per share (without revaluation) and weighted five years’ average loss per share were Tk 12.64 and Tk 0.13 respectively.

Robi commenced its operations in 1997 as Telekom Malaysia International (Bangladesh) with the brand name Aktel. In 2010, it was rebranded as Robi and the company changed its name to Robi Axiata Limited.

Following its merger with Airtel Bangladesh, the merged company, Robi Axiata Limited (Robi), started its commercial operations on November 16, 2016.

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