IPO Process and Price offering System

Fareast Finance and Investment company Ltd.

Group MembersStudent Name Student ID

Tandra Das 1288

Rezaun Nessa Linza 1289

Monira Parvin 1299

Jakeea Shaeed Natasha 1300

S.M. Abdul Awal Pavel 1318

Afia Jahan 2278

Md. Enamul Hasan 2281

Md. Hasibul Islam 2835

Fareast Finance and Investment Ltd.• Incorporated in Bangladesh as a public limited company on June

21, 2001 under The Companies Act, 1994 • The company obtained license from Bangladesh Bank as a Non-Banking Financial Institution under the Financial Institution Act, 1993 on July 03, 2001 to operate as a leasing and financing company as provided under the relevant law

Information of FFIL

Trading Code FAREASTFIN

Issue Manager Grameen Capital Management Limited

Auditors Ahmed Zaker & Co. Website www.ffilbd.com Authorized Capital Tk. 2,000,000,000

Pre- IPO paid-up Capital Tk. 1,150,617,860

IPO size in shares 45,000,000 Post IPO Paid-up Capital Tk. 1,600,617,860

Offer Price per share Tk. 10.00 Face Value per share Tk. 10.00

Services of FFIL

Main Services Of FFIL

Term Finance

Lease Finance

Short Term Finance

Import Finance

Bond Discounting

Export Finance

Bridge Finance

Consumer Credit Scheme

Factoring

Deposits of FFIL

FFIL Sanirbhorota

FFIL Pension Plan

Shomriddhi

Subidha

Double Money Benefit Scheme

Triple Money Benefit Scheme

Lakhpati Scheme

Crorepati Scheme

Education Plan

Safollo and Supreme

IPO Process Followed by FFIL

5. Selection of Underwriters Total 11 Underwriters

4. Selection of Bankers to the Issue Total 14 banks (0.10% of the amount collected for

the services rendered to the issuer by them)

3. Completion of Valuation and Restructuring

M. M. Rahman & Co

2. Selection of Advisers 7 advisors

1. Appointing Issue Manager Grameen Capital Management Limited

Work Before the Consent

Work Before the Consent Cont’d

9. Agreement with CDBL Contract signed

7. Audit of Accounts Ahmed Zaker & CO.

6. Collection of NOC from Lenders NOC collected

8. Credit Rating Report Credit Rating Information and Services Limited (CRISL)

11. Refund Warrant Guarantee Guarantee made under rule 10 of the Public Issue Rules 2006

For Resident Bangladeshi- • Banker the Issue• Citibank, N.A.• Standard Chartered Bank• Account Payee cheque

For Non Resident Bangladesh-• Currency in which the value of securities

was paid

10. Approval from Sponsors Md. Anwer Hossian Khan Delwar Hossain Rana

Md. Azmat RahmanMd. Shamsul Islam

Md. Ershad Ullah

Work Before the Consent Cont’d

Work Before the Consent Cont’d

13. Application Submission Submitted to BSEC

14. Consent from BSEC Received 45,000,000 shares

Tk.10/share

12. Draft Prospectus Prepared

Works after Consent

1. Submission of Prospectus Submitted with (RJSC)

Works after Consent

2. Announcement for the Investors June 13, 2013

3. Provide Full Prospectus 11 June 2013

4. Application for Listing June 19, 2013

5. Subscription Period July 14-18, 2013 for resident Bangladeshis

July 27, 2013 for non-resident Bangladeshis

6. Transaction Rate Spot rate at Sonali bank on July 14, 2013

7. In Case of Under Subscription Not applied

8. Approval of Listing September 04, 2013

Objective of the Issue

To meet the compliance of the statutory requirement

of the company

Strengthening the capital base and liquidity of the

Company

Utilization of Fund

FFIL will augment their business expansion as net proceeds of the present issue of 45,000,000 ordinary shares of Tk. 10.00 each at par, totaling Tk. 450,000,000 would be utilized

Investment

Industrial development

Leasing

Lending

Refinancing

Refund of high cost borrowing of the Company within 1 year of listing

FFIL

Refund of high cost borrowing of the Company within receiving proceeds from IPOGSP

This IPO process will augment business expansion as such proceeds of the present issue of 20,000,000 ordinary share of Tk.10.00 each at an issue price of Tk.25.00 per share including a premium of Tk. 15.00 per share totaling Tk. 500,000,000.00

Investment

Industrial development

Leasing

Lending

Refinancing

Capital Structure

Particulars No. of Shares Face Value

Amount (taka)

Before IPO

Authorized Capital 200,000,000 10 2,000,000,000

Issued & Fully paid-up capital as per audited accounts as on31/12/2011

104,601,624 10 1,046,016,240

Raising of paid up capital 10,460,162 10 104,601,620

Total paid up capital before IPO (Considering 10% bonus share for the year 2011)

115,061,786 10 1,150,617,860

After IPO

To be issued as IPO 45,000,000 10 450,000,000

Paid up capital (Post IPO) 160,061,786 1,600,617,860

(raising of paid up capital by issuing10% bonus share which has been approved by SEC vide letter no.SEC/CI/CPLC-05/2001/1286 dated May 14, 2012)

FFIL

Particulars No. of Shares Face Value

Amount (taka)

Before IPO: Authorized Capital 100,000,000 10 1,000,000,000

Paid up capital as on 31st December 2010 2,159,850 100 215,985,000

*After denomination the face value into

Tk.10.00 the number of shares stand (a)

21,598,500 10 215,985,000

**Raising of paid up capital‐ 6,047,580 10 60,475,800

Total paid up capital before IPO (considering

28% bonus share for the year 2010) (a+b)

27,646,080 10 276,460,800

After IPO: To be issued as IPO 20,000,000 10 200,000,000Paid up capital (Post IPO) 47,646,080 476,460,800

(raising of capital by issuing28% bonus share which has been approved by SEC vide their letter no.

SEC/CFD/CPLC 29/2002/793 dated 3rd‐November, 2011) (b)

GSP

Issue Price of Share

Fareast Finance and Investment Ltd.

GSP Finance

Offer Price/ Issue Price

Tk. 10 Tk. 25

Premium Tk. NIL Tk. 15

Issue Manager

The Grameen Capital Management Ltd.

ICB Capital Management Ltd.

Fareast Finance and Investment Limited issued 45,000,000

ordinary shares

GSP Finance Company (Bangladesh) Limited issued public offer of 20,000,000 ordinary

share

Market Price of Shares

FFILTk. 18.2

Tk. 7.9

DSE

DSE

CSE

Tk.18.0CSE

GSP FinanceTk. 35.7

Tk. 13.1

Tk. 12.5

DSE

DSE

CSE

Tk. 35.0CSE