Dhaka, Bangladesh (BBN)– Bangladesh’s S. S. Steel Limited makes flying debut on Thursday as its share price jumps 391 percent within first 90 minutes of trading.
The engineering sector company makes its share trading debut on stock exchanges under “N” category on Thursday.
Within first 90 minutes of trading, its share price traded between BDT 44 and BDT 55 each to reach at BDT 49.10 at 12:00 noon on Dhaka bourse. Its issue price was BDT 10 each.
It also featured in the top turnover chart on the prime bourse till then with 5.17 million shares worth Tk 260 million changing hands.
The S. S. Steel is the 37th listed company under the “Engineering” sector on the Dhaka bourse. The sector accounted for around 6.0 percent of the DSE’s total market capitalisation.
The engineering sector company raised a capital worth BDT 250 million from the capital market by offloading 25 million ordinary shares using the fixed price method.
The securities regulator — Bangladesh Securities and Exchange Commission (BSEC) approved the company’s IPO proposal on July 17 last year to raise the said amount.
IPO subscription of the company’s shares was held between October 28 and November 07, 2018.
The IPO proceeds will be utilised for purchasing machinery and plant (85.73 percent), construction of new four storied building and 60 feet height steel structure shed (6.05 percent) and bear the IPO expenses (8.22 percent), according to the company’s IPO prospectus.
As per un-audited financial statements of the company for the three months period ended on 30 September 2018, net profit after tax was BDT 78.15 million, pre-IPO earnings per share (EPS) was BDT 0.36 and post-IPO EPS was BDT 0.32.
The net asset value (NAV) per share with revaluation was BDT 17.15 and NAV per share without revaluation was BDT 13.86 as of 30 September 2018.
The Citizen Securities & Investment is working as issue manager of S.S. Steel IPO.
The SS Steel began commercial operations on December 22, 2001. The company is located in the Tongi Industrial Area in Gazipur.
The principal activities of the company are manufacturing of Billet, MS-Rod, Iron Ingot, Deformed Rod, steel for the reinforcement of concrete (Ribbed Bar), Angel Bar and 500W steel.