RAK Ceramics completes price discovery under book-building

The RAK Ceramics (Bangladesh) Ltd has completed the price discovery of its shares through bidding by eligible institutional investors under the book-building method, the first of its kind in Bangladesh.The highest bidding price of each share, with a face value of Tk 10 and indicative price of Tk 40, was Tk 48 while the lowest bidding price was Tk 40, said a press release.The company is issuing a total of 34.51 million ordinary shares, of which the institutional investors quoted for 6.902 million shares, reported Bangladesh Sangbad Sangstha.Of the rest of the issue, 10 per cent is reserved for non- resident Bangladeshis, 10 per cent is for mutual funds and 60 per cent is for the general public.The weighted and the cut-off price of each share stood at Tk 48 after bidding of the investors, said the press release.Tentative date for public subscription of each share with a value of Tk 48 is from April 11 to 18 and market lot is 200 shares.A total of 175 institutional investors registered with the system of which 168 participated in the bidding.IDLC Finance Ltd is the lead issue manager while BRAC EPL Investments Ltd is the joint issue manager to this IPO and Prime Finance and Investment Limited is the registrar to the issue.The book building is a process where market participants determine price of security.Bidding of company shares was conducted in web-based software available at ‘www.bbsbangladesh.com’, which was introduced jointly by Dhaka Stock Exchange and Chittagong Stock Exchange.The online registration was open from February 25 to 28 while bidding was open from March 1 to 3, said the press release Thursday.

Source: New Age Business Desk

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