Bidding for IPO pricing to be held Oct 16-19 | 2017-10-11 |

Bashundhara Paper Mills

Bidding for IPO pricing to be held Oct 16-19

Staff Correspondent     11th October, 2017 02:05:39 printer

Bidding for IPO pricing to be held Oct 16-19

The electronic bidding to determine the cut-off price for initial public offer (IPO) of Bashundhara Paper Mills Ltd will be conducted from 16 to 19 October through book building method.


The bidding will begin at 5:00 pm on October 16 and will continue till 5:00 pm on October 19, company sources said.


Bashundhara Paper Mills has already received the permission from Bangladesh Securities and Exchange Commission (BSEC) to conduct the bidding process for determining the cut-off price for its IPO to raise Tk 2 billion from the capital market.


The funds raised from the IPO will be spent on buying new machinery, repaying loans and bearing the IPO expense and other costs of the company.


According to the financial statement for the year ended on June 30, 2016, the company’s net asset value (NAV) per share (EPS) is of Tk 30.49, including revaluation reserve, whereas the value is of Tk 15.79 without revaluation reserve.


The weighted average of earnings per share (EPS) was Tk 1.46 for the year ended on June 30, 2016.


AAA Finance and Investment is working as issue manager for the IPO.


A tripartite agreement between Bashundhara Paper Mills Limited, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) was signed on September 26 for using electronic subscription system software and technical support to determine the cut-off price under book building method for the company’s IPO.


Bashundhara Paper Mills, a concern of country’s leading business conglomerate Bashundhara Group, produces a wide range of paper and paper products. The company also exports paper. It has three production units in Narayanganj and Munshiganj.


Bashundhara Paper Mills produces writing and printing paper, white printing paper, photocopy and sanitary paper, multipurpose paper, colour printing paper, ledger printing paper and bidi paper.