General investors will be able to buy Index Agro’s shares at Tk 50 instead of Tk 62 at its initial public offering (IPO) after the Bangladesh Securities and Exchange Commission (BSEC) approved a 20 percent discount on the company’s primary shares.
According to the securities regulator’s book-building rules, shares sold to general investors must be at a 10 percent discount on the cut-off price. But the stock market regulator permitted it to increase the discount to 20 percent after the company made a request.
The agro-based company will use Tk 50 crore from the IPO fund to install new machinery at its plant and repay some of its bank loans.
According to its audited financial statements for the year ending on June 30, 2019, Index Agro’s weighted net asset value per share was Tk 45, while earnings per share was Tk 7.1.
Incorporated in 2000, Index Agro Industries commenced operations with a poultry hatching and breeder facility to cater to the growing demand for quality pullets for the promizing local poultry industry.
AFC Capital and EBL Investment will act as issue managers. ♦
(The story originally published by Dhaka Tribune)
