Dhaka, Bangladesh (BBN)-Khan Brothers PP Woven Bag Industries on Tuesday made a flying trade debut on the stock exchanges by becoming the top gainer and turnover leader of the day.
Listed with an offer value of Tk 10 each, Khan Brothers PP Woven Bag Industries shares traded between BDT 80 and BDT 47 and closed at BDT 76.6, soaring 666 percent on the Dhaka Stock Exchange (DSE).
A total of 9.62 million shares worth BDT 588.98 million changed hands in the premier bourse, securing the company top position on the turnover leaders’ list.
In the port city bourse – CSE – each share of the company ranged between BDT 80 and BDT 50 and closed at BDT 75.5, gaining 655 percent from its issue price of BDT 10.
The company, which received regulatory approval from the Bangladesh Securities and Exchange Commission in June, floated 20 million ordinary shares at an offer price of BDT 10 and raised a fund worth BDT200 million from the public.
The IPO proceeds are being used for expansion of business 81.29 percent, repayment of long-term loan 10.50 percent and working capital purpose 8.21 percent, according to the company’s prospectus.
“A newly listed issue created hype among the investors on the first day of trading as the company came to with a face value,” said an analyst.
Meanwhile, the board of directors of the new comer on Tuesday declared 10 percent stock dividend for the year ended 30 June 2014.
The company has also reported NPAT of BDT 74.38 million, EPS of BDT 1.71, NAV per share of BDT 15.85 and NOCFPS of BDT 1.20 for the year ended on 30 June 2014.
The company provides innovative packaging solutions for different industries by manufacturing tailor made polypropylene fabrics, polypropylene woven bags and polypropylene woven sacks, according to the company’s website.