FE Report

Grameenphone (GP), the country's leading mobile phone operator, offers its initial public offering (IPO) for public subscription tomorrow (Sunday) to raise Tk 4.86 billon from the stock market.

This will be the largest IPO offered by any company in the history of the country's stock market.

The subscription closes for the local people Thursday next, but will remain open for overseas investors until October 18, according its prospectus.

Total size of the GP issue is Tk 9.73 billion, of which Tk 4860.7 million (69.40 million shares) would be sold to public and Tk 485.80 million (65.70 million shares) for institutions.

The face value has been fixed at Tk 10 a share with a premium of Tk 60 for public and Tk 64 for institutions. Market lot has been fixed at 200 shares, meaning that investors will have to submit Tk 14,000 for each application.

A rumour that subscription of the GP IPOs might be delayed for over the couple of days has been rejected by the Securities and Exchange Commissions (SEC).

Rejecting the rumour executive director of the Securities and Exchange Commission (SEC) Anwarul Kabir Bhuiyan said: "Some might take advantage capitalising the rumour."

Concerns over liquidity outflow from the market during subscription period have already been eased, market operators said.

The investors have already mobilised fund for subscribing GP primary shares from the market by selling a portion of their portfolios, meaning that the market has already survived the shock well.