Modern Steel to submit IPO proposal soon

Modern Steel Mills Limited will submit the IPO (initial public offering) proposal to the securities regulator soon as the company has already completed the road show.

As part of going public under the book building method, the company held a road show for eligible investors on Sunday.

The company is set to raise a capital worth Tk 2.0 billion from the capital market through IPO for business expansion and meeting IPO expenses.

"We have completed the road show. Now our issue manager will submit IPO proposal as early as possible," said Md. Moin Uddin, the company secretary.

ICB Capital Management is working as issue manager of the Modern Steels Mills.

Modern Steel Mills held the road show at International Convention Centre Bashundhara in presence of eligible investors, including merchant banks and asset management companies.

At the road show, the company said that 97 per cent of the IPO proceeds will be utilised for business expansion.

The chairman of Modern Steel Mills Marzanur Rahman, among others, spoke at the road show.

The company has reported diluted earnings per share (EPS) of Tk 2.70 for July-December, 2017. The company's EPS (diluted) was Tk 2.27 for the year ended on June 30, 2017 and Tk 2.26 for the year ended on June 30, 2016.

Under the book building method, eligible investors will be allowed to purchase 50 per cent shares of Modern Steel Mills at the cut-off price, while mutual funds will purchase 10 per cent of 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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