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AFC Agro gets 60 times higher IPO subscription

imagesThe initial public offering (IPO) of AFC Agro Biotech has been oversubscribed by more than 60 times, indicating strong investor interest in the company.

Investors ordered shares worth over Tk700 crore against the offer of Tk12 crore, according to the company officials.  The bio-pharmaceutical and biochemical manufacturer has issued 1.2 crore ordinary shares of Tk10 each under the fixed price method.

Of the total IPO, 10% kept for non-resident Bangladeshis, 10% for mutual funds, 20% for the investors affected by the late 2010 market crash and 60% for resident Bangladeshis.  Lottery draw of the IPO would be held next week.

The raised fund will be used for purchasing new machinery and meeting IPO expenses. The subscription started from December 8, and ended on December 12 for general investors and December 21 for non-resident Bangladeshis.

As per the company’s half-yearly financial statement for the year ended on June 30 last year, the earning per share (EPS) and net asset value (NAV) per share were Tk1.01 and Tk11.10 respectively. Imperial Capital and Sigma Capital Management acts as the issue managers of the company that produces agro-based pharmaceutical fermentation products.

Bangladesh Securities and Exchange Commission approved the IPO of AFC Agro Biotech on October 8.

Source: Dhaka Tribune

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