Shamsul Alamin Real Estate (SARE), a concern of Shamsul Alamin Group, will hold road show for institutional investors today (Wednesday) to go public using the book building method.
The real estate company plans to raise Tk 800 million using the book building method to meet construction cost for ongoing projects, repayment of bank loan and expenses of the initial public offering (IPO).
The road show of the company will be held at the Radisson Blu Water Garden Hotel at 7.00pm as part of its plan for the IPO.
Eligible investors such as merchant banks, asset management companies, stock dealers, banks, financial institutions, insurance companies, alternative investment fund managers and other institutions approved by the securities regulator will take part the event.
A road show is a presentation by an issuer of securities to potential buyers. A road show is a requirement under the 'book building' regulations before price discovery of the company's shares.
Book building is a process through which an issuer attempts to determine the price to offer for its security based on demand from institutional investors.
The price of an IPO share is determined through automated bidding participated by Eligible financial institutions.
The shares are then opened for the IPO participants at the cut-off price. The method was suspended and then revised by the regulator following the 2011 market crash.
Alliance Financial Services is the issue manager of the IPO of Shamsul Alamin Real Estate while Banco Finance and Investment is the registrar to the issue.
Shamsul Alamin Real Estate's net profit after tax stood at Tk 52.85 million in the July-December period of 2016. The company's earnings per share (EPS) stood at Tk 1.51 and net asset value (NAV) per share of Tk 43.93 during July-December period of 2016.
The company's paid-up capital is Tk 350 million and authorised capital is Tk 1.0 billion. Shamsul Alamin Real Estate started its commercial operation in 2003.
If Bangladesh Securities and Exchange Commission (BSEC) approve the company's IPO, it will be the 5th listed company under the services and real estate category on the Dhaka Stock Exchange (DSE).
Shamsul Alamin Real Estate is engaged in real estate business which includes purchasing high land for construction of multi-storied apartment building, shopping cum commercial and office spaces and selling out those established to the clients, according to the red-herring prospectus of the company.
Meanwhile, Esquire Knit Composite, a strategic business unit of Esquire Group, held road show for institutional investors on Tuesday as part of its plan for the IPO. Eligible institutional investors approved by the securities regulator joined the event.
The export-oriented knit garments factory plans to raise Tk 1.50 billion using book-building method for its business expansion.
Of the proceeds, more than Tk 1.0 billion will be used for building construction, Tk 431.4 million for dyeing and washing machinery procurement, and the rest Tk 64.4 million for IPO expenses.
Md. Mofazzal Hossain, chairman of the company and Ehsanul Habib, managing director of the company were present, among others at the road show programme.
Ehsanul Habib said that the company will invest a total of Tk 5.76 billion for business expansion as the demand for their products is increasing in the international market.
Of the total investment, the company will raise Tk 1.50 billion from the capital market using the book-building method, including premium, Tk 3.40 billion will be collected from local and foreign loans and Tk 860 million will come from the company's profit.
Located at Sonargaon in Narayanganj, the company has been emerging as a conglomerate with knitting, fabric dyeing and finishing, cutting, sewing, industrial laundry, embroidery, printing and washing facilities under one roof since its commercial launch in 2001.