ADN Telecom Limited got the approval from Bangladesh Securities and Exchange Commission on Tuesday for initial public offering to raise Tk 57 crore by issuing shares at Tk 27-30 each.
Earlier, BSEC allowed ADN Telecom to conduct eligible institutional investors bidding under the book building method of public issue rules on August 15 last year.
The commission, under the public issue rules, decided to offer ADN’s IPO shares to general and non-resident Bangladeshi investors at 10 percent 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 Tk 30 and so shares would be allotted to general investors along with NRB investors at Tk 27 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.
ADN Telecom will use the IPO proceeds in infrastructure development, installing data centre, paying bank loans and meeting the IPO expenses.
As per the entity’s audited financial statements for the year ended on June 30, 2018, the company’s net asset value per share and basic earnings per share were Tk 18.80 and Tk 2.67 respectively.