Market Digest

Delta Hospital to withdraw IPO

Business Desk

4 June, 2020 12:00 AM printer

The board of directors of Delta Hospital Limited has taken a decision to withdraw its Initial Public Offering (IPO).

The decision came at the 208th board meeting of the hospital in the city on Monday, said a press release.

Price bidding based on the book building method to fix the share price of Delta Hospital Limited's Initial Public Offering (IPO) has begun at 5pm on March 22, 2020 and ended at 5pm on March 25, 2020 at the Dhaka Stock Exchange in the capital.

Out of 88 bidders, 14 bidders have offered the highest price of Tk 15 and 11 bidders have presented the second highest price of Tk 14 in the price bidding.  

The bidders have offered bids ranging from a maximum of Tk 48 to a minimum of Tk 11.

They have proposed a total price of Tk 32 crore 39 lakh 6 thousand 900.

The Bangladesh Securities and Exchange Commission (BSEC) has allowed the company to start bidding to set the cut off price on February 11, 2020.

The company is expected to collect capital worth Tk 50 crore in this electronic bidding process for its business expansion and bank loan repayment.

It is the first company after the latest revision of the public issue rules approved by BSEC on July 16, 2019.

The BSEC also set a condition that each eligible investors who will take part in the electronic bidding for discovering its cut-off price, have to invest minimum Tk 10 million for five days from starting of bidding in the listed securities.

As per the financial statement for the year ended on June 30, 2019, the net asset value (NAV) per share was Tk 45.84 with asset revaluation and Tk 16.62 without asset revaluation. The basic earnings per share (EPS) stood at Tk 2.10 and the weighted average EPS stood at Tk 1.91.

Prime Finance Capital Management Ltd is the issue manager and ICB Capital Management Limited will act as the registrar of the company's IPO.