BD Thai Food subscription floats from 23 December

The subscription of an initial public offering (IPO) of BD Thai Food and Beverage will open on 23 December and continue till 29 December this year.

This week, the company received consent from the Bangladesh Securities and Exchange Commission (BSEC) in this regard.

Earlier, the regulator approved the company to raise Tk15 crore with an IPO under the fixed price method.

The company will issue 1.5 crore general shares at a face value of Tk10 each.

The company processes different kinds of fruit juices, carbonated beverages, drinking water, hard candies, soft candies, lollipops, and gums.

The company markets its products under the brand name "Nectar", and distributes the products through 260 dealers.

The beverage producer will use the funds for machinery and equipment, land purchase and land development, and bank loan repayments.

The pre-IPO sponsors, directors, and investors in the company 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 for the company.

The weighted average earnings per share of the company stood at Tk0.63.

At the end of 30 June 2020, the net asset value (NAV) without revaluation was Tk12.82 and Tk14.23 with revaluation.

Sponsors and directors will not be able to receive any dividends until the EPS reaches Tk1.

The company cannot declare any dividends for its shareholders before listing.

It can allot 15% shares for employees with a lock-in period of two years.

The company is entering the market with different product lines. Each product line will be facing different competitors.