A view of Dhaka Stock Exchange in Bangladesh
Dhaka, Bangladesh (BBN)- Bashundhara Paper Mills Ltd made a flaying trading debut on Monday as its share price trading at BDT 142 and BDT 155 within first 30 minutes of trading, from its issue price of BDT 80 each.
The company also topped in the turnover chart with 3.72 million shares worth BDT 531 million changing hands within 30 minutes of trading.
Bashundhara Paper Mills, a concern of the country's leading business conglomerate, Bashundhara Group, raised a capital worth BDT 2.0 billion by floating more than 26 million ordinary shares under the book-building method.
The company conducted electronic bidding in October 2017 and the cut-off price was fixed at BDT 80, including a premium of BDT 70, for a share of BDT 10 each for the eligible institutional investors.
Of the total issued shares, the eligible investors got about 60 percent or 15.62 million shares at the cut-off price of BDT 80 each as per the book-building method.
The remaining 10.40 million or 40 percent shares issued to the general public, including non-resident Bangladeshis, at 10 percent discount on the cut-off price of BDT 72 each.
The company's (un-audited) net profit after tax stood at BDT 321.76 million in the nine months for the period from July, 2017 to March, 2018.
The post-IPO EPS stood at BDT 1.85 for the period from July, 2017 to March, 2018. The net asset value (NAV) per share was BDT 34.07 as of March 31, 2018.
The IPO fund will be used to purchase machineries of about BDT 1.35 billion, repay bank loans of about BDT 600 million and bear the IPO expenses of about BDT 50 million.
AAA Finance & Investment is working as issue manager for Bashundhara Paper's IPO.
The Bashundhara Paper Mills produces different types of papers and paper products.
BBN/SSR/SR