IPO subscription of Aman Cotton opens

The public subscription of Aman Cotton Fibrous Limited opened on Sunday and will continue till June 10.

The company will raise a capital worth Tk 800 million through the book-building method of initial public offering (IPO).

The company earlier received the approval of

Bangladesh Securities and Exchange Commission (BSEC) earlier approved the IPO to float 20.83 million ordinary shares.

Of the shares, 12.50 million will be issued to eligible investors at the cut-off price of Tk 40 each, which was set through an electronic bidding in November last year.

The remaining 8.33 million shares will be sold to general shareholders, including non-resident Bangladeshis, at 10 per cent discount on the cut-off price, meaning the general investors will get the shares at Tk 36 each.

The IPO fund will be used to buy machinery, repay bank loans and meet the IPO expenses.

The net asset value per share of the company was Tk 35.63 as of June 2016 and the weighted average earnings per share (EPS) was Tk 3.49, according to the IPO prospectus.

ICB Capital Management is the issue manager of the IPO.

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