IPO subscription of ADN Telecom begins

05 November 2019

Economic Reporter :
The Initial Public Offering (IPO) of ADN Telecom Limited begins from Monday with the company aiming to raise Tk57 crore from the capital market through Book Building method.
The IPO will stay open for both resident and non-resident Bangladeshis till November 11 this year. The market lot is consisted of 100 shares while each IPO share is priced at Tk27.
The Bangladesh Securities and Exchange Commission (BSEC) last September approved the prospectus for the IPO of ADN Telecom.
The cut-off price on the Initial Public Offering of ADN Telecom was set at Tk27 per share as the company aims to raise Tk57 crore from the capital market.
As per the book building method, eligible institutional investors took part in the price discovery of the shares by bidding over a fixed time.
The BSEC on August 15 last year allowed ADN Telecom to conduct eligible institutional investors (EII) bidding under the book building method of public issue rules.
The commission, under the public issue rules, decided to offer ADN's IPO shares to general and non-resident Bangladeshi investors at 10% discount of cut-off price which was set by the bidding of the institutional investors.
As per the bidding of EIIs, the cut-off price of the company's shares stood at Tk30 and so shares would be allotted to general investors along with NRB investors at Tk27 each.
Under the public issue rules, of the 1.97 crore IPO shares of ADN, 1.18 crore will be allocated to EIIs, 79.16 lakh shares will be offered to the general and NRB investors.

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