EIs start bidding to discover Runner Auto’s IPO share price
FE Report | Tuesday, 11 September 2018
The bidding for IPO shares of Runner Automobiles by the eligible investors (EIs) started with Tk 81 each through the uniform and integrated electronic subscription system (ESS) at 5.00 pm on Monday.
The price discovery of the initial public offering (IPO) through book building method will continue till 5.00 pm on September 13.
Md. Moniruzzaman, managing director of IDLC Investments, confirmed that the bidding of the company's shares started with Tk 81 each.
On July 10 last, the Bangladesh Securities and Exchange Commission (BSEC) allowed Runner Automobiles to determine the cut-off price required to go public.
Under the book building method, the EIs purchase shares of a company at a cut-off price determined through electronic bidding. And general investors get the shares at 10 per cent discount on the cut-off price.
The EIs are allowed to purchase 60 per cent shares of a company under the method while the general investors would purchase remaining 40 per cent.
Runner Automobiles will utilise the IPO fund for research and development works, purchasing machinery, repaying bank loans and bearing the IPO expense.
According to financial statements for the year ended on June 30, 2017, the company's net asset value (NAV) per share is Tk 55.70, with revaluation reserve. The value is Tk 41.94 without revaluation reserve.
And the weighted average of the EPS (earnings per share) is Tk 3.31.
The company is a motorcycle manufacturer in Bangladesh. It produces 12 different types of motorcycles ranging between 80cc and 150cc.
It has 15 per cent market share in the country's auto industry. The company also assembles three-wheelers and four-wheelers.
Runner Automobiles has also moved to produce motorcycles of 165cc to 500cc based on imported parts and raw materials, said a company statement.
The commerce ministry gave its consent on August 30 last to import parts and raw materials.