The initial share IPO issued by CEDB Hydropower Development Company has received 11 times more applications. According to Sunrise Capital, CEDB's share issue and sale manager, 26.345 million shares have been subscribed from 1.736 million applications till Tuesday evening. This is 11.24 times more than the 2,341,954 units issued from the IPO.
According to CDSC, 94.31 percent of the total applications received so far are online. Out of the total IPO applications of the company, 16 lakh 37 thousand 912 applications have been received online. Only the remaining 5.69 percent have physically gone to banks and financial institutions to buy shares.
The second wave of coronavirus infections has led to a sharp rise in the number of online users.
After the government issued prohibitory orders on April 29, it became difficult for the general public to go to banks and financial institutions to apply for an IPO.
The company has issued 2,518,230 ordinary shares equal to Rs. 251,823,000, which is 30 percent of the Rs. 839.41 million issued to the public since April 30.
Out of that, 2 percent or 50 thousand 365 shares have been allotted to the employees and 5 percent or 125 thousand 911 shares have been allotted to the collective investment fund while the remaining 23 lakh 41 thousand 954 shares will be distributed to the public.
As there are more applications than demand for the shares of the company, the shares will be distributed at the rate of minimum 10 units as per the Securities Issuance and Distribution Directive. Accordingly, only 234,195 people will get shares at the rate of at least 10 units. The rest of the applicants seem to be empty handed.
IPO
