IPO Offering Price Determination in BD: Examples

Three Companies i.e. Dragon Sweater and Spinning Limited, Bangladesh National Insurance Company Limited, and Doreen Power Generations and Systems Limited, are joining DSE and CSE in the coming periods. Dragon Sweater and Bangladesh National Insurance are coming at the face value of Tk. 10 while Doreen Power is coming with Tk. 19 premium at Tk. 29. 

When I was checking the prospectus of these companies, I've found two main methods these companies have used for the determination of the IPO price i.e.

• Net Asset Value Per Share (with revaluation reserve or without revaluation reserve) and 
• Historical Earning Based Value Per Share 

The pricing sections of these shares are self explanatory, so, I've only included those sections here as presented in the prospectus. 

Net Asset Value Per Share

• Bangladesh National Insurance Company Limited

• Doreen Power Generations and Systems Limited

• Dragon Sweater and Spinning Limited

Historical Earning Based Value Per Share 

• Dragon Sweater and Spinning Limited

•  Doreen Power Generations and Systems Limited

You can find the full prospectus of these companies by clicking here.