Bidding for discovery of the cut-off price on the initial public offering (IPO) by ADN Telecom Limited is set to begin on Monday.
Bidding on the company's shares will continue till Thursday 5:00pm, November 08, officials of ADN Telecom said. The company aims to raise Tk 57 crore from the capital market through the IPO under the book building method.
The Bangladesh Securities and Exchange Commission (BSEC) approved the book building method for determining the cut-off price of ADN Telecom on August 14.
Under the book building method, the selling price of shares is set through bidding by eligible institutional investors.
After discovery of the cut-off price, interested institutional investors will have to pay the set amount for shares they keen to buy, while general investors will get the shares at a 10% discount on the cut-off price.
ADN Telecom offers wide range of data, voice, and internet services to its local and international clients.
With Tk44.86 million in paid-up capital, ADN Telecom has a strong reputation as a front-line service provider in the sector, providing customers at home and abroad with data, voice, and internet services. The road show for the company’s IPO was held at Le Méridien in Dhaka on October 19, 2017.
According to the entity’s audited financial statements for the year ending June 30, 2017, the company’s net asset value per share and weighted average earnings per share were Tk16.13 and Tk2.52 respectively.
According to ADN Telecom’s prospectus, the company’s net profit has almost doubled in the past four years to Tk10.59 crore in fiscal year 2016-17. Return on assets, an indicator of how the company is profitable relative to its total assets, rose to 8.56% in fiscal year 2016-17 from 8.21% in the previous year – proving that the company’s management has efficiently used its assets to generate earnings.
ADN Telecom will use the initial public offering (IPO) proceeds to develop their infrastructure, install a data centre, return bank loans, and meet IPO expenses.
The company commenced business in 2003, as a private limited company, as "Advanced Data Networks System Ltd" The company had been renamed as "ADN Telecom Limited" and became a public limited company back in 2012.
ICB Capital Management Limited is the issue manager of the company’s IPO.