Runner Automobiles' IPO lottery draw today
FE Report | Monday, 4 March 2019
Runner Automobiles will hold IPO lottery draw today (Monday) to allocate 13.93 million ordinary shares among the successful applicants.
The initial public offering (IPO) lottery will be held at 10:30am at the AGB Colony Community Center at Motijheel in Dhaka.
After the event, result will be published on the websites of Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and the company.
Runner Automobiles, a flagship company of Runner Group, raised a fund worth Tk 1.0 billion from the capital market under the book-building method.
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 fund will be utilised for the purpose of research and development works, purchasing machinery, repaying bank loans and bearing the IPO expenses.
The IPO subscription of the company was held between January 31 and February 10.
The cut-off price of the shares of motorcycle maker was 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 company for the year ended 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.