ADN Telecom IPO lottery draw on November 28

The Initial Public Offering (IPO) lottery draw of ADN Telecom Ltd is set to be held on November 28.

Confirming the matter to The Business Standard, ADN Telecom Company Secretary Md Monir Hossain said the lottery will be held at 10am at the Institute of Engineers in Dhaka.

The company has raised Tk57 crore from the share market using the IPO Book Building method.

The ADN Telecom has collected Tk30 crore from eligible investors by offering 9,895,833 shares with a face value of Tk30 each and raised Tk6 crore by selling 1,979,167 shares to mutual funds and the Collective Investment Scheme (CIS) for the same price.

It has collected another Tk21 crore by selling 7,916,666 shares to general and non-resident investors at a rate of Tk27 per share.

Earlier, a bidding was held for setting the share price through the book building method.  There, the eligible investors fixed the cut off price of the company's share at Tk30. As per regulations, the general investors can buy the share at Tk27 which is 10 percent less than the cut off price.

The company will spend Tk32.67 crore for the development of its physical infrastructure, Tk9.32 crore for setting up a data center, Tk12.06 crore for repaying bank loans and Tk2.95 crore for IPO expenditure.

The ICB Capital Management will be the issue manager of the company and the Roots Investments Ltd will serve as the registrar to the issue.

The ADN Telecom gave no dividend to its shareholders in the accounting year that ended on June 30, 2019.

According to the company's audited financial statement, as of June 30, 2019 the company's Net Asset Value (NAV) per share stood at Tk21.03, while the Earnings per Share (EPS) was Tk2.83.

On the first quarter (July-September) of 2019-2020 fiscal year, the company reported that the EPS was Tk0.63.