The public subscription of two companies -- Robi Axiata Ltd., the country's second largest mobile phone operator, and Crystal Insurance Company Ltd. -- will begin this month.
Crystal Insurance: The initial public offering (IPO) subscription of Crystal Insurance Company will commence on November 10 at 10:00am, aiming to raise Tk 160 million from the capital market.
The IPO subscription for shares of the non-life insurer by the eligible investors through electronic subscription system under the fixed-price method will continue until 5:30pm on November 16, according to the company's abridged prospectus.
The securities regulator -- Bangladesh Securities and Exchange Commission (BSEC) -- on September 23 approved the non-life insurer's proposal to raise the fund from the capital market through initial public offering.
As per the regulatory approval, the company will issue 16 million ordinary shares with an offer price of Tk 10 each under the fixed price method.
Each Eligible Investor (EI) who intends to submit application shall maintain a minimum investment of Tk 10 million only at market price in listed securities as on November 2 as per the Public Issue Rules, 2015.
The Central Depository Bangladesh Ltd (CDBL) shall send a report to the exchange regarding the holding of EIs in the listed securities and the exchange shall ensure the compliance in this regard.
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. Non-resident Bangladeshis (NRB) and foreign applicants will have to pay US$ 59.39 or GBP 45.69 or EUR 50.52 for each lot of shares.
The proceeds from the IPO will be used for investment in FDR & Treasury bond, capital market and to meet the IPO-related expenses.
The company's authorised capital is Tk 1.0 billion and pre-IPO paid-up capital is Tk 240 million.
According to the financial statement ending June 30, 2019, the company's net asset value (NAV) per share was Tk 24.42 while earnings per share (EPS) were Tk 2.92.
Sonar Bangla Capital Management Ltd is acting as the issue manager for the company's IPO process.
Robi Axiata: The IPO subscription of Robi Axiata is set to open on November 17.
It will be the country's largest ever IPO till date. Investors will be able to apply to buy the company's primary shares until 5:30pm on November 23.
The securities regulator approved the company's IPO proposal on September 23.
As per the regulatory approval, Robi will raise a capital worth Tk 5.23 billion by offloading over 523.8 million ordinary shares at an offer price of Tk 10 each under the fixed-price method.
Of 523.8 million shares, 387.7 million will be issued through IPO, while remaining 136.1 million shares will be allotted to employees under Employee Share Purchase Plan (ESPP) at an offer price of Tk 10 each.
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. Non-resident Bangladeshis (NRBs) and foreign applicants will have to pay US$ 59.38 or GBP 46.10 or EUR 50.93 for each lot shares.
The company will utilise the IPO proceeds for network expansion (98.47 per cent) and bear the expense of public offering (1.53 per cent).
Robi reported an EPS (earnings per share) of Tk 0.04 for the year ended on December 31, 2019.
For same period, the company's net asset value (NAV) without revaluation stood at Tk 12.64 per share. The company's weighted average EPS of five years is a negative value of Tk 0.13.
The company's authorised capital is Tk 60 billion and pre-IPO paid-up capital is Tk 47.14 billion.
IDLC Investment is the issue manager of Robi Axiata's IPO processes.
As per the BSEC approval, two-year lock-in will be imposed on the shares that will be allotted to employees.
On the other hand, three-year lock-in will be applicable to sponsor shares in line with the existing rules.
In its consent letter, the securities regulator has asked the company to allot shares to its employees after completion of public subscription.
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