Dhaka, Bangladesh (BBN)-The initial public offering (IPO) subscription of Dragon Sweater and Spinning, a sister concern of Dragon Group, begins Sunday while IPO subscription of Doreen Power Generations will take place from February 8, officials said.
DRAGON SWEATER: Using the fixed price method, the export-oriented spinning and sweater manufacturing company is set to float 40 million ordinary shares of BDT 10 each to raise BDT 400 million from public.
IPO subscription will remain open until January 26 for resident and non-resident Bangladeshis (NRBs).
A market lot is 500 shares and an investor needs BDT 5,000 to apply for one lot.
The required amount (per lot) of foreign currency for NRBs and foreign applicants for IPO of Dragon Sweater are USD 63.86 or GBP 43.03 or EUR 58.81, according to company’s IPO prospectus.
As per the audited financial statement for the last five years, the weighted average earnings per share (EPS) of the company stood at BDT 1.48 and net asset value (NAV) per share at BDT 18.79 (including revaluation surplus) for year ended on December 31, 2014.
The company will use the IPO fund to buy machinery, building and civil construction, buy spare parts, current capital and meeting the IPO expenses.
Swadesh Investment Management is acting as issue manager for the IPO.
The securities regulator- Bangladesh Securities and Exchange Commission (BSEC)- approved the IPO proposal of the company on December 7, last year.
DOREEN POWER: IPO subscription of Doreen Power Generations and Systems will begin from February 8 to February 16 for raising BDT 580 million from the public.
Doreen Power, which got approval from the securities regulator on November 30, last year, is set to float 20 million ordinary shares of BDT 10 each, in addition to BDT 19 as premium.
The company will use the funds from the initial public offering to set up power plants for its two subsidiaries and to repay bank loans and meeting the IPO expenses.
Doreen Power’s five-year weighted average earnings per share stood at BDT 3.19 and net asset value per share (NAV) at BDT 34.87 in June 2014.
Alliance Financial Services and ICB Capital Management will manage the IPO jointly.
BBN/SK/AD