The Bangladesh Securities and Exchange Commission on Tuesday approved an initial public offering of ADN Telecom Limited, allowing the company to raise Tk 57 crore by issuing shares at Tk 27-30 each.
The commission gave the approval at a meeting presided over by its chairman M Khairul Hossain on the day, a BSEC press release said.
The BSEC on August 15 last year allowed ADN Telecom to conduct eligible institutional investors bidding under the book building method of public issue rules.
The commission, under the public issue rules, decided to offer ADN’s IPO shares to general and non-resident Bangladeshi investors at 10 per cent discount of cut-off price which was set by the bidding of the institutional investors.
As per the bidding of EIIs, the cut-off price of the company’s shares stood at Tk 30 and so shares would be allotted to general investors along with NRB investors at Tk 27 each.
Under the public issue rules, of the 1.97 crore IPO shares of ADN, 1.18 crore will be allocated to EIIs, 79.16 lakh shares will be offered to the general and NRB investors.
ADN Telecom will use the IPO proceeds in infrastructure development, installing data centre, paying bank loans and meeting the IPO expenses.
As per the entity’s audited financial statements for the year ended on June 30, 2018, the company’s net asset value per share and basic earnings per share were Tk 18.80 and Tk 2.67 respectively.
ICB Capital management Limited is the issue manager of the company’s IPO.
The commission at the meeting also decided to provide registration to an impact fund — Build Bangladesh Social Entrepreneurs Fund.
The size of the fund is Tk 83 crore and the fund’s tenure is 10 years.
The impact fund’s sponsor is JC Management Company, fund manager Impress Capital, trustee is Green Delta Insurance.
The fund basically invest in the agriculture and food processing, health and security, recyclable and refined energy, information and communication technology, sustainable manufacture sector, education, engineering and tourism for the social and environmental development.
A total Tk 88.22 crore shortfalls in consolidated customer accounts in TREC holders of the DSE and the CSE and Tk 7.08 crore unlawful loans taken by companies’ directors were adjusted through the intervention of the commission, the press release said.
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