Robi's IPO subscription begins November 17

Public subscription of Robi Axiata, which floated the largest ever IPO (initial public offering), will start on November 17 and will end on November 23.

IDLC Investment is the issue manager of Robi IPO.

The Bangladesh Securities and Exchange Commission (BSEC) approved the company's IPO proposal on September 23.

As per the regulatory approval, Robi will raise a capital worth Tk 5.23 billion offloading over 523.8 million shares at an offer price of Tk 10 each under the fixed price method.

Of 523.8 million shares, 387.7 million shares 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.

The company will utilise its IPO fund for network expansion along with bearing the expense of public offering.

Robi reported an EPS (earnings per share) of Tk 0.04 only 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 (Tk 0.13).

As per the BSEC approval, two-year lock-in will be imposed on the shares that will allotted to employees.

On the other hand, three-year lock-in will be imposed on sponsor shares in line with existing rules.

In its consent letter, the securities regulator has asked the company to allot shares to its employees on completion of public subscription.

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