IPO subscription of Aman Feed begins

 FE Report



The initial public offering (IPO) subscription of Aman Feed, a concern of Aman Group, started on Monday to raise a fund worth Tk 720 million from the public, officials said.

The fisheries and livestock feed producer and supplier is the first in offering issue under the mandatory new IPO method through the stockbrokers and merchant banks instead applying through banks.

The securities regulator has made the submission of application for IPO shares through merchant banks and brokerage firms mandatory recently instead of applying through banks, aimed to cut down the processing time to three weeks from more than five weeks.

The public subscription of the company will be ended on June 4, this year. Market lot is 200 shares.

The stock market regulator -- Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of Aman Feed on April 9, this year.

The company is set to float 20 million ordinary shares worth Tk 10 each at an offer price of Tk 36, with Tk 26 as premium, according to the company's IPO prospectus.

The company has offered 60 per cent shares for general public, 20 per cent for affected small investors, 10 per cent for non-resident Bangladeshi and 10 per cent for mutual funds.

The required amount (per lot) of Foreign Currency for NRB and Foreign Applicants for IPO of Aman Feed Limited are USD 92.91 or GBP 60.72 or EUR 85.11.

The company will use 46.61 per cent of the funds from the initial public offering for business expansion, 7.02 per cent for repayment of long-term loan, 41.55 per cent for working capital and 2.82 per cent for IPO expenses.

The company's earnings per share (EPS) as of June 2014 stood at Tk 4.97 with a net asset value (NAV) per share of Tk 30.77. LankaBangla Investments is the issue manager for the IPO.

Aman Feed Limited (AFL) was incorporated on February 07, 2005 and started its commercial production on July 12, 2006. The factory is located at Ullahpara, Sirajgonj. The company is primarily engaged in producing and distributing poultry, fish, shrimp and cattle feed, according to the company's website.

At present, the company's production capacity is 6,000 tonnes a month, and it reaches out to customers through more than 200 dealers across the country.

babulfexpress@gmail.com
Share on Google Plus

About Jessica Hornberger

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.
    Blogger Comment
    Facebook Comment