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Eligible Investors (EIs)

Who are Eligible Investors (EIs)?

“Eligible Investor or EI” means any of the following person who has business operation or investment in Bangladesh and 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 or NR having account with any Security Custodian registered with the Commission.
• Recognized Provident Funds, approved Pension Funds and approved Gratuity Funds and
• Any other category as approved by the Commission.

Provided that EI who has maintained minimum investment in listed securities before the intended subscription, as per the condition of the consent letter for the public issue, shall be eligible for subscription:
Provided further that the institutional EI shall have adequate resources and personnel to perform the valuation of equity securities:
Provided further that the Commission may impose further condition for any of the above persons from time to time in the consent letter for the public offer;

Roles of Eligible Investors (EIs):

• Participate in the roadshow conducted by the issuer and issue manager.
• Submit independent valuation of shares within 3 working days after completion of the roadshow.
• Contribute to determination of the indicative price based on submitted valuations.
• Provide comments on the Red-Herring Prospectus within the prescribed timeline.
• Participate in electronic bidding through the Electronic Subscription System (ESS).
• Submit bids within the permitted price band (±25% of indicative price).
• Deposit the required bid amount as per bidding rules.
• Participate in price discovery leading to determination of cut-off price.
• Receive allotment on a pro-rata basis in case of over-subscription.

Benefits of Eligible Investors (EIs):

• Eligible Investors receive a reserved portion of the public offer. 40% of the total public offer under Book-Building Method and 10% of the total public offer under Fixed Price Method.
• In case of over-subscription, EIs receive shares on a pro-rata basis (not lottery-based).
• EIs are allowed to participate in price discovery, unlike general investors.
• EIs can bid within a defined price band prior to public subscription.
• EIs receive allocation prior to general investor subscription in Book-Building.

Lock-in periods for Eligible Investors (EIs):

shares allotted to EI’s under book building method shall be subject to lock-in in the following manner:

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