IPO lottery of Hamid Fabrics today
FE Report | Thursday, 30 October 2014
The Initial Public Offering (IPO) lottery of Hamid Fabrics Limited (HFL) will be held today (Thursday) to allocate shares among the investors, officials said.
The lottery will be held at 10am at the Institution of Engineers, Ramna Dhaka. Bangladesh University of Engineering and Technology (BUET) will conduct IPO lottery.
Hamid Fabrics was the first in offering issues under the new IPO method through the stockbrokers and merchant banks which aimed to cut down the processing time to three weeks from more than five weeks.
As many as 174 stockbrokers from the Dhaka Stock Exchange (DSE) and 73 from the Chittagong Stock Exchange (CSE) along with 37 merchant banks participated in the Hamid fabric's IPO.
The public subscription of Hamid Fabrics, a sister concern of Mahin Group, was held September 28 to October 2 for resident Bangladeshi while October 11 for non-resident Bangladeshis.
Using the fixed price method, the textile company floated 30 million ordinary shares of Tk 10 each at an offer price of Tk 35, including Tk 25 as premium and raised a fund worth Tk 1.05 billion from public.
The textile company's IPO subscription is oversubscribed around nine times. A market lot is 200 shares.
The company's five-year weighted average earnings per share, as of June 2013, stood at Tk 2.97 and the net asset value per share Tk 41.14 after revaluation, according to IPO prospectus.
ICB Capital Management acted as the issue manager of the company's IPO, the proceedings from which would be used to service Hamid Fabrics' existing bank loans and fund business expansion.
The Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of Hamid Fabrics on August 12, this year to raise a fund worth Tk 1.05 billion from public.
Hamid Fabrics Ltd is a Public Limited Company registered in Bangladesh and incorporated under the Companies Act, 1994.
It manufactures solid-dyed fabrics for the 100 per cent export oriented Ready Made Garment (RMG) industry of Bangladesh. Hamid Fabrics is a deemed exporter, which qualifies for all export incentives and benefits.
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