Alliance Holdings Limited, a diversified holding company with a dynamic investment portfolio, is set to go public using the book building method, a modern pricing mechanism for initial public offering (IPO).
The company will float 3.5 crore ordinary shares of Tk 10 each and use the raised fund to expand its existing business and venture into new prospective areas in the infrastructure sectors -- power, telecom and shipbuilding.
It will submit its IPO application to the Securities and Exchange Commission this week, the company said in a press statement. RAK Ceramics, a UAE-Bangladesh joint venture, is the first company that uses book building for IPO.
Alliance Holdings, the paid-up capital of which is Tk 100 crore, will organise a road show on Tuesday to display the company's key facts to the institutional bidders.
Alliance Financial Services Limited is the issue manager of the IPO.
Alliance Holdings earned a consolidated net profit of Tk 77.44 crore in 2009 with diluted earnings per share of Tk 7.69.
The company has interests in a wide range of industries, including container terminals (off-dock), pre-engineered steel buildings, real estate, financial institutions, beverages and textiles.
It is involved with some of the well-recognised institutions and brands in the country. These include Summit Alliance Port Limited, a blue chip company in Bangladesh stockmarket, and Global Beverage Company Limited, the franchisee and bottler for Virgin and Zam Zam soft drinks and Shark Energy Drink.
Alliance Holdings is a sponsor shareholder of Industrial Promotion and Development Company of Bangladesh (IPDC) Limited, the first private sector financial institution in Bangladesh.