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Runner Automobile IPO opens Jan 31

The motorcycle maker to raise Tk 1.0b

FE Report | January 12, 2019 00:00:00

The initial public offering (IPO) of Runner Automo-biles will open for subscription on January 31, seeking to raise Tk 1.0 billion from the capital market under the book-building method.

The last date for subscription is February 10.

Runner Automobiles, the flagship company of Runner Group, will allot a total of more than 13.93 million ordinary shares.

The book-building method is a process through which an issuer attempts to determine the price of a share based on the demand from institutional investors.

The cut-off price of the shares of Runner Automobiles has been fixed at Tk 75 each as discovered by eligible investors (EIs) through bidding under the book-building method.

Of 13.93 million shares, more than 8.33 million shares (60 per cent) will be issued to the eligible institutional investors at the cut-off price of Tk 75 each.

The remaining 5.60 million shares (40 per cent) will be issued to general investors through IPO at Tk 67 each, after a 10 per cent discount on the cut-off price.

According to financial statements of the motorcycle maker for the year ending on June 30, 2017, the company's net asset value (NAV with revaluation) per share stood at Tk 55.70. The NAV without revaluation was Tk 41.94.

The weighted average of the EPS (earnings per share) is Tk 3.31.

IDLC Investments Limited is the issue manager of the IPO.

Runner Automobiles, which started its journey in 2000, is engaged in manufacturing two-wheelers in Bangladesh. It also started exporting motorcycles to Nepal in January 2017.


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