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Mir Akhter Hossain Ltd, one of the largest construction and engineering firms of the country, will make its share trading debut on the bourses Tuesday (February 2) under ‘N’ category, officials said.
Mir Akhter Hossain, which raised Tk 1.25 billion from the capital market under the book-building method for expansion of the business, received approval from the Bangladesh Securities and Exchange Commission (BSEC) on November 5, 2020.
The old infrastructure developer offloaded roughly 20.77 million ordinary shares and initial public offering (IPO) subscription was held between December 24 and December 30, last year under the book-building method.
The company’s overall IPO subscription hit 7.57 times high as it received applications of 157.20 million shares against the public issue of IPO shares roughly 20.77 million, according to the final status of the subscription.
Earlier the company completed an electronic bidding process and explored its cut-off price of shares - a requirement for going public under the book building method.
The cut-off price of Mir Akhter shares was fixed at Tk 60 each through electronic bidding by eligible investors held between October 4 and October 7, last year.
The company will issue roughly 20.77 million ordinary shares. Of the total shares, 10.38 million are reserved for eligible investors (EIs) at their own bidding price.
The remaining 10.38 million shares for the IPO participants, including general investors and non-resident Bangladeshis, at a 10 per cent discount on the cut-off price, meaning the general investors got IPO shares at Tk 54 each.
The company will use the raised fund for purchasing construction equipment and machinery; repay bank loans and IPO-related expenses.
As per the audited financial statement, as of June 30, 2019, the company’s earnings per share (EPS) was Tk 6.32, net asset value per share Tk 34.71, including re-evaluated reserve and Tk 33.63 excluding re-evaluated reserve. Besides, the company’s weighted average EPS was Tk 6.21.
IDLC Investments is the issue manager for the company’s IPO process.
Mir Akhter Hossain Ltd which started its journey in the field of the construction industry in 1968 has over fifty years of experience with a proven track record in the construction industry of Bangladesh.
The company continues to hold a unique place in the country’s engineering and constructions sector as a well-diversified and leading company with operations in projects including constructions of roads, bridges, highways, railway tracks, airports, 5-star luxury hotels, civil construction of power plants, factory buildings and complex infrastructural projects, according to its prospectus.