The bidding to explore the cut-off price of shares of Index Agro Industries Limited will begin today (Sunday).
Only the eligible investors (EIs) can participate in the price bidding which will continue until 5:00pm on November 4 (round the clock), according to a disclosure posted on the website of Dhaka Stock Exchange (DSE).
The period for submission of valuation report by the eligible investors through the electronic subscription system will start at 10:30am on November 5 and end at 10:30am on November 9.
An EI who intends to participate in the electronic bidding for the company's shares shall maintain a minimum investment of Tk 10 million in listed securities as on October 21, according to the Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015.
The minimum tick size (bidding value) for bidding shall be Tk 4.50 million in accordance with the BSEC consent letter sent to the Index Agro Industries on October 15.
On September 10, the securities regulator allowed the Index Agro Industries to explore its cut-off price, a requirement for going public under the book-building method.
The company will raise a capital worth Tk 500 million from the capital market.
The company's IPO proceeds will be utilised for constructing buildings, purchasing machinery and bearing the IPO-related expenses.
According to the financial statement for the year ended on June 30, 2019, the company's net asset value (NAV) per share stood at Tk 45.03 (with revaluation reserve) while the earnings per share (EPS) was Tk 7.07.
The company also reported the weighted average EPS of Tk 5.60 based on financials of the last five years.
AFC Capital Ltd and EBL Investments Ltd are jointly working as issue managers for the company's IPO process.
Incorporated in 2000, Index Agro Industries commenced operations with a poultry hatching and breeder facility to cater to the growing demand for quality pullets for the promising local poultry industry.
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