Dhaka, Bangladesh (BBN) – Evince Textiles made a flying trading debut on Sunday, as its share price more than doubled on the bourses.
The textile manufacturer’s share price hovered between BDT 16.50 and BDT 25.10 on the DSE, before closing at BDT 23.50, soaring 135 percent from its offer price of BDT 10 each.
According to statistics from the DSE, some 9.17 million Evince shares were traded, generating a turnover of nearly BDT 176 million, emerging as the second highest turnover leader after ACME Laboratories.
In the port city bourse Chittagong Stock Exchange (CSE), each share of the Evince Textiles hovered between BDT 16.20 and BDT 25, before closing at BDT 22.80, jumping 128 percent from its issue price.
Analysts said the investors showed higher enthusiasm surrounding debutant Evince Textiles amid short-term speculation. So, it created hype among the investors on the first day of trading.
The Evince Textiles, which received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) in April, floated 17 million ordinary shares at an offer price of BDT 10 each and raised a fund worth BDT 170 million from the public.
IPO subscription of the company, which was held between May 01 and May 12, oversubscribed by 33 times as the company received around BDT 5.60 billion against IPO issue of BDT 170 million.
As of March this year, the company’s consolidated net profit was BDT 36.93 million with consolidated basic earnings per share (EPS) of BDT 0.36 in January-March, 2016 period as against consolidated profit after tax of BDT 33.10 million in the same period last year.
However, considering Post-IPO 120,000,000 number of shares, the company’s basic EPS was BDT 0.31 and a net asset value per share of BDT 16.84 as of March.
The company will utilise the fund for boosting working capital and civil construction and modernising the machineries along with bearing the IPO expenses, according to the IPO prospectus.
LankaBangla Investments acted as the issue manager of the company’s IPO.
Set up in 2003, Evince Textiles currently produces over a million yards of cotton shirting fabrics a month, according to the company’s website.
Evince Textiles is the second listed company of Evince Group. In 2013, the Evince Group’s Argon Denim was listed with bourses.