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Eligible Investors (EIs)

Categories of institutional investors qualified to participate in book-building and price discovery for IPOs.

Who are Eligible Investors (EIs)?

"Eligible Investor or EI" means any of the following person who has business operation or investment in Bangladesh and is registered with the ESS of the stock exchange(s):

  • Merchant Bank and Portfolio Manager
  • Asset Manager
  • Stock Dealer
  • Bank
  • Financial Institution
  • Insurance Company
  • Fund Manager
  • Alternative Investment Fund and other Collective Investment Scheme
  • Non-resident (NR) having account with any Security Custodian registered with the Commission
  • Recognized Provident Funds, approved Pension Funds and approved Gratuity Funds
  • any other category as approved by the Commission

Roles of EIs

  • participate in the roadshow
  • submit independent valuation of shares within 3 working days after the roadshow
  • contribute to the indicative price
  • provide comments on the Red-Herring Prospectus
  • participate in electronic bidding through ESS
  • submit bids within the permitted price band (±25% of indicative price)
  • deposit the required bid amount
  • participate in price discovery leading to the cut-off price
  • receive allotment on a pro-rata basis in case of over-subscription

Benefits of EIs

  • EIs receive a reserved portion of the public offer — 40% under Book-Building and 10% under Fixed Price
  • in case of over-subscription EIs receive shares pro-rata (not lottery)
  • EIs participate in price discovery and may bid within a defined price band prior to public subscription
  • EIs receive allocation prior to general investors in Book-Building

Lock-in periods for EIs (Book-Building)

  • 90 days for 50% of allotted shares
  • 120 days for 25%
  • 180 days for the rest 25%