Each resident investor avails 40 Acme Pesticides shares in IPO
Against their subscription for 1,000 primary shares in the initial public offering (IPO) of Acme Pesticides Limited, each resident individual investor is set to avail 40 shares, disclosed the Dhaka Stock Exchange (DSE).
Non-resident investors have been individually set to own 63 shares as competition is little less for them, the premier bourse informed following the pro-rata share allocation event held on Tuesday in DSE Tower.
Earlier this year, the capital market regulator introduced a pro-rata basis for primary share allocation in cases of oversubscription abolishing the lottery method to pick the lucky investors.
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In the pro-rata method, the joint electronic subscription system (ESS) of the bourses calculate how many shares are available for allocation and how many shares investors asked for collectively. In cases of oversubscription, the ESS allocate the available shares among each applicant proportionately.
Acme Pesticides IPO was 20.22 times oversubscribed.
DSE Managing Director (in charge) M Saifur Rahman Mazumdar, Senior Manager for listing affairs Md Robiul Islam, Acme Pesticides Managing Director Reza-Ur-Rahman Sinha, Chittagong Stock Exchange Head of IT Hasnain Bari and other senior officials were present in the event.
In the new rules for IPO application, investors cannot subscribe for primary shares unless they have at least Tk20,000 investments in the secondary market and one individual cannot subscribe for more than primary shares worth Tk10,000.
