The initial public offering of the country’s second largest telecom operator, Robi Axiata Limited, worth Tk 523 crore will hit the market on Tuesday.
This will be the largest IPO on the country’s capital market.
According to the Dhaka Stock Exchange, subscription for shares of Robi Axiata by eligible investors through the electronic subscription system under the fixed price method of the stock exchanges will start from 10:00am on November 17 and continue till 5:30pm on November 23.
Each eligible investor who intends to submit application through the electronic subscription system of the exchange(s) must maintain a minimum investment of Tk 1 crore only at market price in listed securities as on November 09, 2020, the web post said.
During this period, general investors and non-resident Bangladeshis will also be allowed to subscribe to the IPO.
The Bangladesh Securities and Exchange Commission approved Robi Axiata’s proposal to raise Tk 523.79 crore from the country’s capital market through an initial public offering on September 23.
Robi will float 52.37 crore shares at an issue price of Tk 10 each. Of the shares, 38.77 crore shares would be issued to retail and institutional investors and 13.61 crore shares would be issued to eligible directors and employees of Robi under the employee share purchase plan in conjunction with the proposed listing.
Of the total IPO proceeds, Robi would utilise Tk 515.77 crore for network expansion and spend Tk 8.02 crore to meet IPO-related expenses.
With the issuance of new shares worth Tk 523.79 crore, the paid-up capital of the company would stand at Tk 5,237.9 crore from the existing Tk 4,714.1 crore.
As per the company’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 losses per share were Tk 12.64 and Tk 0.13 respectively.
IDLC Investments is the issue manager of the IPO.
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