Dhaka, Bangladesh (BBN) - IFAD Autos Limited (IAL), an auto mobile dealer, made a flying trade debut on Thursday on the bourses by becoming the top gainers and turnover leaders although the company’s first quarter net profit declined.
Each share of the company closed at BDT 67.7 on the Dhaka Stock Exchange (DSE), registering an increase of 126 percent from the offer price of BDT 30, according to the Dhaka Stock Exchange (DSE) website.
Some 11.68 million shares worth BDT 740.09 million were exchanged on the DSE trading floor, which is around 28.35 percent of the total turnover of BDT 2.61 billion.
At the Chittagong Stock Exchange (CSE) – each share of the company traded between BDT 47 to BDT 68.5 before closing at BDT 66.9, which was 123 percent increased from its issue price of BDT 30. A total of 2.86 million shares changed with a value of BDT 177.95 million.
IFAD Autos is the 29th listed company in the engineering sector that accounts for more than 4.0 per cent of the total market capitalisation on the premier bourse.
The public subscription of the company was took place between November 23 to 27, 2014 for resident Bangladeshi and it was continued till December 6 for non-resident Bangladeshi (NRBs).
The automobile dealer floated 21.25 million ordinary shares of BDT 10 each at an offer price of BDT 30, including BDT 20 as premium and raised a fund worth BDT 637.50 million from the public.
Initial Public Offering (IPO) lottery of IFAD Autos was held on December 24, 2014. IPO subscription of the company was oversubscribed around 16 times as it received over BDT 10.23 billion against public issue of BDT 637.50 million.
However, the company’s net profit fell 46.22 percent year-on-year to BDT 54.92 million in July-September period 2014, with BDT 0.48 in earnings per share (EPS) and NAV per share BDT 42.17, according to DSE website.
The proceeds from the IPO is being used for capital expenditure for assembling & body building units, bank loan repayment and IPO expenses.
Banco Finance and Investment and Alpha Capital Management jointly managed the initial public offering of IFAD Autos.
The securities regulator - Bangladesh Securities & Exchange Commission (BSEC) approved the IPO proposal of IFAD Autos on September 18, 2014.
The automobile dealers’ main activity is importing, marketing and body building of different models of Ashok Leyland’s vehicles, the second largest commercial vehicles maker in India, for assembly in Bangladeshthrough its own marketing staffs, dealers and selling agents in different districts across Bangladesh.
BBN/SSR/BB-05Feb15-10:21 pm (BST)