The IPO subscription of Bangladesh Export Import Company's Sukuk Bond for Tk 7.50 billion has been extended till September 6 as the bond received a lukewarm response from investors in the first phase that ended on Monday.
In the first phase, the initial public-offering subscription for the country's largest private Sukuk bond started on August 16 and ended on August 23.
The bond was subscribed only 7.42 per cent in the first phase. The offer received bids worth Tk 556.16 million from 71 institutional investors, according to the Dhaka Stock Exchange (DSE).
“The subscription will be continued till 5.30pm of September 06”, said the company in a filing with the DSE on Tuesday.
BSEC Spokesperson Mohammad Rezaul Karim said there is an option that the highest 15 days for public subscription for the bond, but the company set five days in the first phase.
“As the bond received lower application than the demand, the company extended the subscription period”, he said.
The stock-market regulator - Bangladesh Securities and Exchange Commission (BSEC)-- has accorded consent to Beximco as originator for issuance of Beximco Green-Sukuk Bond of Tk 30 billion on July 8 this year.
Of Tk 30 billion, Tk 15 billion will be raised through private placement, Tk 7.50 billion from the existing shareholders of Beximco as rights option under private offer and Tk 7.50 billion through IPO (initial public offering).
Beximco will utilise the proceeds for implementing the solar projects of Teesta Solar and Korotoa Solar to produce electricity from renewable energy and transmit to the national grid.
The company will also utilise the proceeds for expansion-project financing and refinancing (non-interest bearing) of the textile machinery for expansion of the textile division of the Beximco.
The tenure of the asset-backed green-sukuk will be five years and the face value of the bond is Tk 100 per unit. The minimum subscription amount is Tk 5,000 (or its multiples) and there is no maximum bar.
Investment Corporation of Bangladesh (ICB) is the trustee, and City Bank Capital Resources and Agrani Equity and Investment are issue manager of the Sukuk.
Each share of the Beximco, which was listed on the DSE in 1989, closed at Tk 104.30 on Tuesday, losing 2.16 per cent over the previous day. Its shares traded between Tk 18.80 and Tk 110.20 in the last one year.
The company has reported earnings per share (EPS) of Tk 2.38 for January-March 2021 as against Tk 0.12 for January-March 2020.
Its nine months EPS rose to Tk 4.30 for July 2020-March 2021 as against Tk 0.66 for July 2019-March 2020.
The company disbursed 5.0 per cent cash dividend for the year ended on June 30, 2020.
The company's paid-up capital is Tk 8.76 billion, authorised capital is Tk 10 billion and the total number of securities is 876.31 million.
The sponsor-directors own 30.55 per cent stake in the company while the institutional investors own 18.22 per cent, foreign investors 1.47 per cent and the general public 49.76 per cent as of July 31, 2021, the DSE data shows.
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