Here You Can found all type of information about RAK Ceramic Ltd IPO .You Are searching RAK Ceramics IPO Application Form and RAK Ceramics IPO prospects?You can download RAK Ceramics IPO Application Form,RAK Ceramics IPO prospects and latest news and notice here.RAK Ceramics IPO Lottery Subscription For General public – Opening Date: April 25, 2010 Closing Date: April 29, 2010 For NRB applicants – Opening Date: April 25, 2010 Closing Date: May 8, 2010.
RAK Ceramics LTD 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.
Abridged Version of Prospectus
RAK Ceramics (Bangladesh) Limited
RAK Tower (7th , 8th & 9th Floor), Plot No. 1/A, Jasimuddin Avenue
Sector 3, Uttara Model Town, Dhaka 1230, Bangladesh
Tel: +88(02)8917393, +88(02)8912303 Fax: +88(02)8917096,
Public offer of 34,510,000 ordinary shares of Tk. 10/- at an issue price of Tk. 48/- each totaling to Tk.
1,656,480,000/-
Eligible Institutional Investors have subscribed 20% of the Offer i.e. 6,902,000 ordinary shares of Tk. 10/- under Book
Building Method at a weighted average price of Tk. 48/- per share
Remaining 80% i.e. 27,608,000 ordinary shares of Tk. 10/- at an issue price of Tk 48/- per share (cut off price) are
offered for General Public, NRB, Mutual Funds and Collective Investment Scheme registered with the Commission
Subscription
For General public – Opening Date: April 25, 2010 Closing Date: April 29, 2010
For NRB applicants – Opening Date: April 25, 2010 Closing Date: May 8, 2010
Special Note
Please read the Prospectus carefully which includes ‘Risk Factors’ before taking your investment
decision.
“An applicant cannot submit more than two applications, one in his/her own name and another
jointly with another person. In case an applicant makes more than two applications, all
applications will be treated as invalid and will not be considered for allotment purpose. In
addition, whole or part of application money may be forfeited by the Commission.”
RAK CERAMICS (BANGLADESH) LIMITED – COMPANY PROFILE
RAK Ceramics (Bangladesh) Limited, a UAE-Bangladesh joint venture company, was
incorporated in Bangladesh on 26 November, 1998 as a private company limited by shares
under the Companies Act 1994, later converted into public limited company. The name of the
Company was thereafter changed from RAK Ceramics (Bangladesh) Private Limited to RAK
Ceramics (Bangladesh) Limited as per resolution passed in extraordinary general meeting on 10
June 2008, certificate issued by the Registrar of Joint Stock Companies dated 11 February,
2009. It is engaged in manufacturing and marketing of ceramics tiles, bathroom sets and all
types of sanitary ware. It has started its commercial production on 12 November, 2000. The
commercial production of new sanitary ware plant was started on 10 January, 2004. Further
expansion of the existing facilities of ceramics tiles plant took place in year 2004, and for tiles
and sanitary plant were in year 2007.
RAK Ceramics (Bangladesh) Limited, 90% held by RAK Ceramics PSC, a company incorporated
under the laws of UAE and remaining 10% owned by local investor Mr. S.A.K. Ekramuzzaman.
RAK Ceramics PSC, UAE is presented by Dr. Khater Massaad as Chairman. With an annual
turnover of over BDT 3248 million, within the short span of eight years RAK has firmly
established itself as one of the leading manufacturer of high quality ceramic wall, floor tiles,
gres porcellanato and sanitary wares products in Bangladesh.
NATURE OF BUSINESS
The core business of RAK Ceramics (Bangladesh) Limited is to manufacture and sell tiles and
sanitary wares. The company has over 1000 models in ceramic and porcelain tile business and
regularly adds several new designs to the product. The company manufactures tiles in a very
wide range in the sizes from 13 cm X 13 cm up to 60cm X 60cm in Bangladesh location. The
company has over 40 models an exclusive range of sanitary ware to offer with a very wide
choice. In sanitary ware various models are produced in wash basins (mounted as well as
pedestal), water closets, bathroom sets, bath tubs, shower trays, bathroom cabinets,
accessories and decorated sets. The plant standard capacity is 22,000 square meter tiles and
2,500 pieces of sanitary ware per day. Most of production is consumed in local market and gets
exported to UAE at times. RAK Ceramics (Bangladesh) Limited is an ISO 9001:2008 certified
organization.
USE OF IPO PROCEEDS
RAK Ceramics (Bangladesh) Limited had an outstanding loan amounting to Tk. 1,220,453,209
(Taka One Thousand Two Hundred Twenty Million Four Hundred Fifty Three Thousand Two
hundred Nine) only as on June 30, 2009 from the following banks:
Bank/Financial Institution Loan Amount (Tk.)
Long Term Loan
HSBC 105,000,000
Standard Chartered Bank 210,000,000
Total 315,000,000
Short Term Loan/Overdraft
HSBC 174,377,011
Standard Chartered Bank 212,536,333
Citibank N.A. 518,539,865
Total 905,453,209
Grand Total 1,220,453,209
The company intends to use the net proceeds received from IPO (after adjusting for IPO
expenses) to pay off the loans after listing and the balance amount for working capital, if there
is any as determined by the Board of Directors.
Implementation Schedule: The net proceeds from the IPO shall be used to pay off the above
mentioned loans and the balance amount (if there is any) shall be utilized for working capital
within 3 months of receipt of the net proceed.
Terms of Contract: There is no such contract for repayment of any liability regarding above
loan.
Conduction of IPO lottery- R.A.K.Ceramic (Bangladesh) Ltd.
All concerned are hereby informed that the IPO lottery program of R.A.K.Ceramic (Bangladesh) Ltd. will be conducted on 24 May 2010 at 10:30 am at Bangabandhu International Conference Center (BICC), Sher-e-Bangla Nagar, Dhaka.
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