Dhaka, Bangladesh (BBN)-Dragon Sweater and Spinning Ltd makes its share trading debut Wednesday on Dhaka Stock Exchange, the prime bourse of Bangladesh under “N” category
Dragon Sweater, which is the 44th listed company under the textile sector that accounts for around 4.0 per cent of the Dhaka Stock Exchange’s total market capitalisation.
The export-oriented spinning and sweater manufacturing company floated 40 million ordinary shares of BDT 10 each and raised a fund worth BDT 400 million from the public using the fixed price method.
IPO subscription of the Dragon Sweater, which received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on December 7, last year, took place between January 17 and January 26.
The company received around BDT 8.0 billion through IPO applications against public issue of BDT 400 million, which is over subscribed by 20 times, the company sources said.
As per un-audited third quarter (Q3) financial statements, for the July-September period of 2015, net profit after tax was BDT 32.57 million, pre-IPO earnings per share (EPS) was BDT 0.54 and post-IPO EPS was BDT 0.33.
However, in nine months (January-September, 2015), the company’s net profit after tax was BDT 80.16 million, Pre-IPO EPS was BDT 1.34 and post-IPO EPS was BDT 0.80. The net asset value (NAV) per share was BDT 20.14 as on September 30, 2015.
The last five years’ weighted average earnings per share (EPS) of the company stood at BDT 1.33 and net asset value (NAV) per share at BDT 18.79.
Apart from bearing the IPO expenses, the company will utilise its IPO fund for the purpose of building and civil construction, purchasing machineries and spare parts and boosting working capital.
Swadesh Investment Management is acted as the issue manager of Dragon Sweater and Spinning IPO.