Initial public offering (IPO) subscription of ACME Laboratories is set to begin from April 11 under which the company will raise more than Tk 4.09 billion in book building method, officials said.
Book-building is a process through which an issuer attempts to determine the price to offer for its security by gauging the demand from institutional investors. The price of an IPO share is determined through automated bidding joined by financial institutions.
The shares are then opened to the IPO participants at the bidding cut-off price IPO subscription of the country's oldest pharmaceutical company will remain open until April 21 for resident and non-resident Bangladeshis (NRBs).
Stock market regulator Bangladesh Securities and Exchange Commission (BSEC) gave its final consent to ACME for raising the amount on February 23. According to the BSEC approval, the pharmaceuticals company is set to float 50 million ordinary shares. Of the 50 million shares, 25 million shares are allocated for eligible institutional investors (EII) and 5.0 million for mutual funds at cut-off price of Tk 85.20 each, including a premium of Tk 75.20 for each ten taka share.
The remaining 40 percent or 20 million shares will be issued to general investors, affected investors and non-resident Bangladeshis (NRBs) at a price of Tk 77 each, a 10 percent lower than the cut-off price set for institutional investors.
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