Aman Cotton Fibrous Ltd is set to make its share trading debut on stock exchanges August 6 (Monday) under “N” category, officials said.
Aman Cotton floated a total of 20.83 million ordinary shares and raised a fund worth Tk 800 million from the capital market under the book-building method.
Of the total 20.83 million shares, 12.50 million shares issued to eligible investors at the cut-off price of Tk 40 each which was set by the eligible investors through electronic bidding in November last year.
Remaining 8.33 million shares issued to the general public, including affected small investors and non-resident Bangladeshis, at 10 per cent discount on the cut-off price, meaning they received each share of Tk 36.
The initial public offering (IPO) subscription of the company was held between June 3 and June 10.
Total subscription received from resident Bangladeshis, affected small investors and non-resident Bangladeshis is Tk 3.49 billion against public issue of Tk 300 million, which is oversubscribed by 11.64 times.
Aman Cotton will use the IPO fund to buy machinery, repay bank loans, and meet the IPO expenses.
The net asset value (NAV) per share of the company was Tk 35.63 as on June 2016 and the weighted average earnings per share (EPS) at Tk 3.49, according to the IPO prospectus.
ICB Capital Management is the issue manager of the IPO.