The initial public offering (IPO) subscription of Dominage Steel Building Systems is set to begin at 10:00am on Monday, aiming to raise Tk 300 million from the capital market.
The IPO subscription for shares of the company by the eligible investors through electronic subscription system (ESS) will be continued until 5:30pm on October 25, according to the company's IPO prospectus.
The stock market regulator -- Bangladesh Securities and Exchange Commission (BSEC)-- approved the company's IPO proposal on August 26 to raise Tk 300 million from the capital market through initial public offering.
As per the regulatory approval, the Dominage Steel Building will issue 30 million ordinary shares with an offer price of Tk 10 each using the fixed price method.
A market lot consists of 500 shares and an investor needs Tk 5,000 to apply for each lot of the company's IPO shares.
For non-resident Bangladeshis (NRBs) and foreign applicants, the required amount (per lot) for subscription is US$ 59.39 or GBP 45.95 or EUR 50.30.
Each eligible investor (EI) who intends to submit application through the ESS of the exchange(s) shall maintain a minimum investment of Tk 10 million only at market price in listed securities as on October 11 as per of the Public Issue Rules, 2015 which is in accordance with the consent letter to the company.
The Central Depository Bangladesh Limited (CDBL) will send a report to the exchange regarding the holding of EIs in the listed securities and the exchange shall ensure compliance in this regard
The company will utilise the IPO proceeds for acquisition of new plant & machinery (55.77 per cent), building and other construction (30.14 per cent), electrical installation (7.56 per cent) and bearing the IPO related expenses (6.53 per cent).
The company will complete acquisition of new plant & machinery, building & other construction and electrical installation within 24 months after receiving IPO fund, according to the company's prospectus.
According to the audited financial statements for the year ended on June 30, 2019, the company's basic earnings per share (EPS) were Tk 1.83, and its net asset value per share was Tk 19.81.
The company's authorised capital is Tk 1.0 billion and pre-IPO paid-up capital is Tk 650 million.
Shahjalal Equity Management is the issuer manager of the company's IPO processes.
Incorporated in 2007, Dominage Steel is engaged in manufacturing of various pre-engineered steel buildings structure according to the designs and providing full-fledged architectural and consultancy services.
The company's principal activities are builds pre-engineered steel buildings like factories, warehouses, convention centers, workshop, commercial show rooms, distribution centers, restaurants, CNG stations, multi storied buildings and so on, according to the company's website.
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