Modern Steel to hold IPO road show on Apr 22

Modern Steel Mills Limited will hold a road show for eligible institutional investors on April 22 as the company plans to go public.

The steels maker is set to raise Tk 2.0 billion from the capital market through initial public offering (IPO) using the book building method for repaying the bank loans, purchasing machinery and meeting IPO expenses, said an official of the company.

The road show will be held at 6:30pm at International Convention Centre Bashundhara, where eligible institutional investors will get detail information about the company, according to a disclosure posted on the Chittagong Stock Exchange (CSE).

A road show is a requirement under the book building regulations before price discovery. Book building is a process through which an issuer attempts to determine the price to offer for its security based on demand from institutional investors.

Eligible institutional investors like merchant bankers, asset management companies, stock dealers, banks, mutual funds and collective investment scheme, financial institutions, insurance companies, alternative investment fund managers and other institutions as per approved by the commission will participate in the event.

Eligible investors will be allowed to purchase 50 per cent shares of the company at cut-off price, while mutual funds will purchase 10 per cent shares at the same price.

General public and non-resident Bangladeshis (NRBs) will get 30 per cent and 10 per cent shares respectively at 10 per cent discount from the cut-off price, according to the revised public issue rules.

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