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40 cos to go public to raise Tk 30 billion

Mohammad Mufazzal | April 01, 2020 00:00:00


Some 40 companies will raise an aggregate amount of capital worth around Tk 30 billion from the country's capital markets.

The companies have intended to raise the capital floating IPOs (initial public offerings) under the book building and fixed price method to expand their business capacities.

Besides, many of the companies will also repay bank loans with the funds to be raised from the capital market.

Of the companies, 28 are expecting to raise an aggregate amount of capital worth above Tk 14 billion under the fixed price method.

And the remaining 12 companies are working to complete relevant processes to raise above Tk 15.65 billion under the book building method.

Under the book building method, Modern Steel has moved to raise Tk 2.0 billion, JMI Hospital Requisite Manufacturing Tk 750 million, Aman Tex Tk 2.0 billion, Omera Petroleum Tk 2.38 billion, Shamsual Alamin Real Estate Tk 800 million, Delta Hospital Tk 500 million, Index Agro Tk 500 million, Energypac Power Generation Tk 1.49 billion and Baraka Patenga Power Tk 2.25 billion.

Of these companies, Delta Hospital has recently conducted price bidding required to sales shares to eligible investors (EIs) but the cut-off price of the shares is yet to be declared.

Of other companies, Lub-rref (Bangladesh) has also moved to raise Tk 1.5 billion and Mir Akhter Hossain Tk 1.25 billion under the book building method.

Walton Hi-Tech Industries has almost completed the process of raising capital worth Tk 1.0 billion under the book building method.

After the conducting the bidding, the cut-off price has been fixed at Tk 315 each and the value of the shares to be allotted to the EIs stood at above Tk 609.65 million, of which above Tk 595.86 million is the premium which will come from over 1.37 million shares.

Now, the company is awaiting the regulatory approval to its IPO proposal to raise remaining Tk 390.35 million from the general public.

Of the companies which will raise capital under fixed price method, Hajj Finance Company intended to raise Tk 150 million, Anik Trims Tk 300 million, Three Angle Marine Tk 320 million, Taufica Foods and Agro Tk 300 million, Karim Spinning Mills Tk 150 million, Electro Battery Tk 220 million, Crystal Insurance Tk 160 million, Desh General Insurance Tk 160 million, Al-Faruque Bags Tk 300 million, BD Paints Tk 200 million, SF Textile Tk 180 million, and Bonito Accessories Industries Tk 300 million.

Of other companies, Robi Axiata has already signed an agreement with IDLC Investment to raise around Tk 5.0 billion under the fixed price method.

Badar Spinning Mills and Virgo Pharmaceuticals also planned for raising funds floating IPOs.

Besides, PEB Steel Alliance would raise Tk 150 million, ACHIA Sea Food Tk 200 million, Sonali Life Insurance Tk 190 million, Associated Oxygen Tk 150 million, Gardenia Wears Tk 200 million, Mohammed Elias Brothers Poy Tk 250 million, BD Thai Food and Beverage Tk 150 million, AFC Health Tk 170 million, Oryza Agro Industries Tk 250 million, Express Insurance Tk 267.9 million, Desh General Insurance Tk 160 million and Crystal Insurance Tk 160 million under the fixed price method.

The securities regulator recently has approved the IPO proposal of Express Insurance whose public subscription is set to start on April 13 and close on April 20.

mufazzal.fe@gmail.com


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