Following are quote for different categories for IPO for RAK Ceramics Bangladesh.
Eligible Institutional Investors (EII) Quota : 20% of public offer (6,902,000 ordinary shares)
Mutual Fund Quota : 10% of public offer (3,451,000 ordinary shares)
NRB Quota : 10% of public offer (3,451,000 ordinary shares)
Public Quota : 60% of public offer (20,706,000 ordinary shares)
RAK CERAMICS is Bangladesh's a big ceramics factory established joint ventured with Middle Eastern partners and they are stepping their business in Bangladesh Share Market. As per their procedure, they started as follows[all info collected from there site] :
NOTICE OF INSTITUTIONAL BIDDING FOR PRICE DISCOVERY
This is for kind information of all concerned that the Securities and Exchange Commission (SEC) has given consent vide letter Ref: SEC/CI/IPO-113/2009/346 dated February 10, 2010 to commence bidding by the Eligible Institutional Investors (EII) for price iscovery of further issue of 34,510,000 ordinary shares of RAK Ceramics (Bangladesh) Limited through public offer under book building method. For participating into the bidding, please visit www.bbsbangladesh.com. The offering summary and detail of bidding relating to price discovery of RAK Ceramics (Bangladesh) Limited are as follows:
OFFERING SUMMARY:
Public Offer
: 34,510,000 Ordinary shares
Face Value
: Tk. 10/- each share
Indicative Price
: Tk. 40/- each share, including a premium of
Tk. 30/- per share
Price Band for Bidding
: Upward & Downward band of 20% of indicative
Price (i.e. Tk. 48/- to Tk. 32/-)
Eligible Institutional Investors (EII) Quota
: 20% of public offer (6,902,000 Ordinary shares)
DETAIL OF BIDDING:
Bidding Period
: March 01, 2010 at 11:00 am to March 03, 2010 at 4:00 pm
Time of Bidding
: Periodic (Round the clock)
Registration Period
: February 23, 2010 at 10:00 am to February 28, 2010 at 2:00 pm
Period for Depositing Bidding Money
: February 25, 2010 at 10:00 am to March 03, 2010 at 3:00 pm
Mode of Payment
: Pay Order/B.B.Cheques/Cash/Electronic Transfer
Bank Detail for depositing bidding money
:
a) Bank Name
: Dutch-Bangla Bank Limited
b) Account Name
: M/S. RAK Ceramics EII Escrow Account
c) Account Number
: 0117110000012823
d) Branch Name
: 1) Local Office, 01 Dilkusha C/A, Dhaka-1000
2) Gulshan Branch, Plot No. 6, Block-CES (F), 72 Gulshan Avenue, Dhaka-1212
3) Agrabad Branch, 75 Agrabad C/A (Ground Floor) Chittagong-4100
(EII are eligible for bidding against cleared funds only)
Lock in Period for EII
: 15 trading days from the first trading day
All Eligible Institutional Investors (EII) [as per Securities and Exchange Commission (Public Issue) Rules, 2006)] are requested to participate in the bidding for price discovery of RAK Ceramics (Bangladesh) Limited.
Prospectus for bidding is also available on the website of SEC (www.secbd.org), DSE (www.dsebd.org), CSE (www.cse.com.bd), Issuer (www.rakcerambd.com), Issue Managers (www.idlc.com & www.bracepl.com) and Registrar to the Issue (www.primefinance.net).
For RAK Ceramics (Bangladesh) Limited
(Muhammad Shahidul Islam ACS)
Assistant Company Secretary
Date : 17 November 2009
RAK Ceramics (Bangladesh) Limited will make debut on the stock market as early as possible through Book Building method. But the indication price of its shares is yet to be fixed, the source said.
According to the rules of Book Building method, the company will fix the indication price of its shares through Road Show and seminars on the basis of its qualitative and quantitative items. And the price must be consistent with fundamentals.
One of the SEC members said that the indication price of the RAK Ceramics will be fixed through fixed price rule, which is noted in the Gazette as 16(b). But 16(b) is not applicable in case of Book Building method, the source said.
The greater part of the SEC body including the chairman expressed the opinion to fix the indication price of the RAK Ceramics' shares as per the existing rule of the Book Building method.
Even IDLC Finance, the issuer and Equity partner of the RAK Ceramics is ready to fulfill the SEC's asking requirements, the source added.
The source also said, the proceedings of the RAK Ceramics' approval is going ahead in spite of one member opposes in case of fixing the indication price. According to one high official of the SEC, they cannot go beyond the existing rules at any cost.
RAK Ceramics will issue 30 million shares and each share will have a face value of Tk 10 and premium Tk 30. The indication price of its shares is of Tk 40 (proposed) and the company's paid up capital is Tk 1.86 billion.
R:F : The Financial Express
Dated : 17 November 2009
Published On: 2009-12-25
RAK Ceramics takes on first IPO under book building
Date : 25 December 2009
RAK Ceramics, a Bangladesh-UAE joint venture, is going to be the first to offer primary shares using the book building method, a modern pricing mechanism for initial public offering (IPO).
The Securities and Exchange Commission, the market regulator, gave the green light to RAK at a meeting on Wednesday, officials said.
The tiles and sanitary-ware maker will float three crore ordinary shares worth Tk 10 each in face value under the book-building method.
An indicative price for each RAK share has already been built at Tk 40 through bidding by seven institutions from four sectors.
Now in the price discovery phase, bidders cannot quote 20 percent more or less than the indicative price, meaning they will have to offer between Tk 32 and Tk 48 for each share. Fixing the indicative price is required to obtain regulatory approval.
Prime Bank, Southeast Bank and IFIC Bank joined the indicative price bidding from the banking sector. Prime Finance and Lanka Bangla Finance participated in it as non-bank financial institutions, Mercantile Insurance as an insurance sector company and Royal Green Securities as a brokerage house.
“We will start work for price discovery after receiving written approval from SEC. We hope to complete the work by January,” Arif Khan, chief executive officer and managing director (current charge) of IDLC Finance, told The Daily Star.
IDLC Finance is the lead issue manager of the RAK Ceramic IPO, while BRAC-EPL is the co-issue manager.
The institutions will not be allowed to sell shares in the first 15 trading days under the lock-in system.
RAK's paid-up capital is Tk 195 core. As of June 30, the company's net asset value was Tk 18 a share and earnings per share were Tk 1.99.
Foreign entrepreneurs own 90 percent of the company, while local entrepreneurs own the remainder, but local ownership will become 20 percent after the IPO.
RAK started business in Bangladesh in 2001. Presently, the company holds around 80 percent market share in the sanitary-ware market and around 35 percent in the ceramics market.
PRICE DISCOVERY
The book building mechanism, a widely practiced price fixing mechanism for IPO, was introduced in March, aiming to encourage private-sector entrepreneurs to list their large and profitable companies on bourses at fair prices.
In line with the book building mechanism, institutions bid for shares through which the price is discovered. A weighted average price is fixed based on the highest and lowest price and shares are allotted for institutions at the weighted average price. The lowest price is considered a cut-off price for public offers or general investors.
( Source : The Daily Star)
Finally they have setup Book Building system to launch their IPO program. After all the process the price is set up Taka. 48.00 per share and they have decorated with 200 shares in a market lot.
You will get forms, prospectus and results on this IPO in this blog. Please keep in touch
