Economic Reporter :
The initial public offering (IPO) lottery draw of Lub-rref (Bangladesh) Ltd is set to be held online on 23 February.
The IPO subscription of the company was held from 26 January to 1 February.
General investors applied for the company’s shares worth Tk756.81 crore in total – which is 12.39 times of the IPO.
On 18 November last year, the securities regulator approved Lub-rref to publish its IPO prospectus with a view to collect Tk150 crore for business expansion.
According to the book building method of IPO, half of the company’s shares will be issued to eligible institutional investors who have set the cut-off price at Tk30 each through bidding.
The general public can apply to buy the remaining half of the local lubricant company’s shares at a 10% discount on the cut-off price.
According to the stock exchanges that operate the electronic bidding platform, institutional investors’ bids ranged from Tk13 to Tk60 for each share with a face value of Tk10.
The lubricant manufacturer says it will invest Tk98 crore to expand its existing manufacturing plant. According to the IPO prospectus, this expansion will enable the company to capture 20% of the market share from the existing 8%.
BNO Lubricants – a brand of the company – sells around 10,000 tonnes of lubricant annually for Tk175 crore.
