The IPO (initial public offering) subscription of Bashundhara Paper Mills Limited (BPML) began on Monday for raising Tk 2.0 billion from the capital market under the book-building method.
The IPO subscription of the company will remain open until May 09 for resident and non-resident Bangladeshis.
Bangladesh Securities and Exchange Commission (BSEC) approved the IPO of Bashundhara Paper Mills on January 30.
Earlier on August 27, the BPML received the regulatory approval from the BSEC to conduct the electronic bidding for determining the cut-off price of its shares. The company conducted electronic bidding in October 2017 and the cut-off price was fixed at Tk 80 each, including a premium of Tk 70.
The company is set to float about 26.04 million shares, of which 60 per cent or 15.62 million shares to be issued to the eligible investors at cut-off price of Tk 80 each.
Remaining 10.41 million shares will be sold to general shareholders, including non-resident Bangladeshis, at 10 per cent discount on cut-off price, meaning the general investors will get each share of the company at Tk 72, as per the revised book-building method.
The fund raised from IPO will be spent on buying new machinery, repaying loans and bearing the IPO expense and other costs of the company.
According to financial statement for the year ended on June 30, 2016, the company’s net asset value (NAV) including revaluation reserve per share (EPS) was Tk 30.49, whereas the value was Tk 15.79 without revaluation reserve. The weighted average of earnings per share (EPS) was Tk 1.46 for the year ended on June 30, 2016.
Bashundhara Paper Mills, a concern of country’s leading business conglomerate Bashundhara Group, produces a wide range of paper and paper products. The company exports high quality paper of various grades. It has three production units in Narayanganj and Munshiganj.