Index Agro bidding to begin on November 1
Institutional investors are supposed to purchase the company's shares at the cut-off price, whereas individual investors can buy the shares at a 10% discounted price through IPO
Key Financials
Company will raise TK50 crore from stock market
EPS was Tk7.07 as of 30 Jun 2019
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NAV per share including re-evaluated reserve was Tk45.03
Excluding re-evaluated reserve was Tk44.06
AFC Capital, EBL Investments issue managers of Index Agro's IPO
Price bidding, based on the book-building method to fix the share price of Index Agro Industries Limited, will begin at 5 pm from 1 November this year.
The bidding through electronic subscription system (ESS) of the bourses will continue until 5 pm on 4 November 2020, according to a disclosure posted on the Dhaka Stock Exchange website on Monday.
Earlier, Bangladesh Securities and Exchange Commission allowed the company to determine the cut-off price of its shares through bidding by eligible investors – a requirement for going public under the book-building method.
Only institutional investors can participate in exploring the cut-off price of the company's shares under the electronic bidding process. Besides, the cut-off price will be set based on bids submitted by investors.
Institutional investors are supposed to purchase the company's shares at the cut-off price, whereas individual investors can buy the shares at a 10% discounted price through initial public offering (IPO).
Index Agro intends to raise Tk50 crore through the IPO.
The company will use the IPO proceeds to acquire machinery and equipment, to construct buildings and execute other civil work, and meet other expenditures of the IPO process.
According to the company's audited financial statement as of June 30, 2019, its consolidated earnings per share (EPS) was Tk7.07. Its weighted average EPS was Tk5.60.
The company's net asset value per share, including re-evaluated reserve, was Tk45.03, which was Tk44.06, excluding re-evaluated reserve.
AFC Capital Limited and EBL Investments Limited are the issue managers for the company's IPO.
Index Agro Industries Limited was incorporated in Bangladesh on 13 September 2000. The company started commercial operations on 1 July 2004.
The principal activities of the company are manufacturing and marketing of poultry feed, fish feed and producing day-old chicks.
Though it has no subsidiary company, it has an associate company named X-Ceramics Ltd, which is engaged in manufacturing ceramic tiles in Bangladesh.
