Business Desk :
Lub-rref (Bangladesh) is waiting for its debut on the bourses on tomorrow (Tuesday), following its Tk150 crore initial public offering (IPO) under the book building method.
After obtaining the regulatory approval, the company got Tk30 as the reference price for its each primary share following bids by the institutional investors.
Later, at the end of January, mass investors subscribed for their shares in the IPO and due to 12 times oversubscription, the company held the draw of IPO lottery on 23 February.
According to the book building method of IPO, half of the company’s primary shares were issued to the eligible institutional investors and the remaining half to the public at a 10% discount.
The lubricant manufacturer said in its IPO filing that it would invest Tk98 crore to expand its existing manufacturing plant which would enable the company to capture 20% of the market share – a significant jump from its existing 8% market share in terms of volume.
