Dhaka, Bangladesh (BBN)- Khulna Printing & Packaging Limited attracted investors much on its trading debut on the Bangladesh’s stock markets despite controversy over its disclosure in the IPO prospectus.
The second listed packaging company’s shares jumped 271 percent. The newcomer was also the most traded stock of the session with turnover of BDT 514.24 million changing hands on the Dhaka bourse
Each share of the company on Monday traded between BDT 45 and BDT 29 on the DSE before closing at BDT 37.10 from its issue price of BDT 10. A total of 15.20 million shares changed hands.
On the Chittagong Stock Exchange (CSE), each share of the company traded between BDT 37.50 and BDT 28 before closing at BDT 36.60 from its issue price of BDT 10.
Khulna Printing & Packaging Ltd, which received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on March 4, this year, raised a fund worth BDT 400 million from public.
Using the fixed price method, the packaging company floated 40 million ordinary shares with BDT 10 each to raise the said amount to meet working capital needs and pay back bank loans.
The company’s earnings per share stood at BDT 2.82 and net asset value per share at BDT 24.26 on June 2013. It will be the second listed company under the paper and printing category in the Dhaka bourse.
The company received around 7 times higher IPO subscription against its demand offer.
In first nine months (July 2013 to March 2014) of last fiscal year, the company made BDT 64.89 million profits against BDT 52.61 million a year earlier.
Khulna Printing and Packaging, a sister concern of Lockpur Group, produces packaging materials for export industries, especially for frozen shrimps, according to the company’s website.
The firm produces poly bags, non-printed poly bags in different sizes, sticker and rider.
BBN/SSR/AD-19Aug14-12:28 pm (BST)