The IPO lottery draw of Aman Cotton Fibrous Limited started today (Wednesday) to allocate 8.33 million ordinary shares to the successful applicants.
The initial public offering (IPO) lottery draw started at 10:30am at The Institution of Engineers, Bangladesh in the city, officials said.
The results will be published on the websites of Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), the company and the issue manager.
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 the electronic bidding in November last year.
Remaining 8.33 million shares will be issued to general public, including affected small investors and non-resident Bangladeshis, at 10 per cent discount on cut-off price of Tk 40, meaning they will get each share of the company at Tk 36 each.
The public subscription of Aman Cotton was opened on June 3 and continued till 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.
At present, 50 textiles and garment companies are listed on Dhaka Stock Exchange, accounting for about 4.0 per cent of total market capitalisation.
Aman Cotton Fibrous, a unit of Aman Group, produces carded cotton yarn, combed cotton yarn and sold to the export-oriented textiles and garment companies.