Subscription to an initial public offering (IPO) of BD Thai Food and Beverage will begin on December 23 and will continue until December 29 of this year.
This week, the company received approval from the Bangladesh Securities and Exchange Commission (BSEC) in this regard.
Previously, the regulator had allowed the company to increase Tk15 crore with a fixed price IPO.
The company will issue 1.5 crore of general shares with a par value of Tk 10 each.
The company processes various types of fruit juices, soft drinks, drinking water, hard candies, soft candies, lollipops and gums.
The company markets its products under the “Nectar” brand, and distributes the products through 260 resellers.
The beverage producer will use the funds for machinery and equipment, land purchase and development, and bank loan repayments.
The company’s sponsors, directors and pre-IPO investors will not be able to sell any shares for the next three years after the first trading day.
Unicap Investments Limited and BLI Capital Limited are the issue managers of the company.
The weighted average earnings per share of the company was 0.63 Tk.
At the end of June 30, 2020, the net asset value (NAV) without revaluation was 12.82 Tk and 14.23 Tk with revaluation.
Sponsors and directors will not be able to receive any dividends until EPS reaches Tk1.
The company cannot declare any dividends for its shareholders before listing.
It can allocate 15% of shares to employees with a two-year lock-up period.
The company enters the market with different product lines. Each product line will face different competitors.