Bashundhara Paper publishes IPO lottery results

Bashundhara Paper Mills will allocate 10.40 million ordinary shares among the successful applicants as the lottery draw of the company's initial public offering (IPO) was held on Wednesday. The draw was held at 11:00am at the International Convention City Bashundhara Hall-1 (ICCB) in the city, officials said. The results have already been published on the websites of Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), the company and the issue manager. Bashundhara Paper Mills, a concern of Bashundhara Group, raised Tk 2.0 billion by floating more than 26 million ordinary shares through book-building method. Of the total issued shares, some 15.62 million or 60 per cent shares at Tk 80 each have been kept for the eligible investors as per the book-building method. Remaining 10.40 million shares or 40 per cent will be issued to the general public, including non-resident Bangladeshis, at 10 per cent discount on the cut-off price (Tk 72 each). The company's IPO was oversubscribed by more than nine times than the shares earmarked for the general public and non-resident Bangladeshi investors. The company received a total IPO subscription of Tk 6.83 billion from general public and non-resident Bangladeshi investors against public issue of Tk 750 million, which is oversubscribed by 9.11 times, according to Chittagong Stock Exchange. In August 2017, Bashundhara Paper received approval from Bangladesh Securities and Exchange Commission to conduct the electronic bidding for determining the cut-off price for its IPO. The company conducted electronic bidding in October 2017 and the cut-off price was fixed at Tk 80 each, including a premium of Tk 70, for a share of Tk 10 each for the eligible institutional investors. The IPO subscription was opened to the resident and non-resident Bangladeshis during the period of April 30 to May 09. The IPO fund will be used to purchase machineries of about Tk 1.35 billion, repay bank loans of about Tk 600 million and bear the IPO expenses about Tk 50 million, according to the IPO prospectus. According to financial statement for the year ended on June 30, 2016, the company's net asset value (NAV) per share (EPS) is Tk 30.49, including revaluation reserve, whereas the value is Tk 15.79 without revaluation reserve. The weighted average earnings per share (EPS) was Tk 1.46 for the year ended on June 30, 2016. AAA Finance & Investment is working as the issue manager of the company's IPO.