A view of Dhaka Stock Exchange in Bangladesh
Dhaka, Bangladesh (BBN)– Bangladesh’s ML Dyeing Limited makes flying debut on Monday as its share price jumps 163 percent within first 15 minutes of trading.
ML Dyeing makes its share trading debut on stock exchanges under “N” category on Monday.
Within first 15 minutes of trading, its share price traded between BDT 10 and BDT 31.90 each to reach at BDT 26.30 at 10:45am on Dhaka bourse. Its issue price was BDT 10 each.
ML Dyeing is the 52nd listed company in the textile sector on the prime bourse. The textile sector accounted for about 3.90 percent of the DSE’s total market capitalisation.
The company, which received approval from the Bangladesh Securities and Exchange Commission (BSEC) on May 14, raised a capital worth BDT 200 million from the capital market.
Using the fixed price method, ML Dyeing offloaded 20 million ordinary shares at an offer price of BDT 10 each.
The initial public offering (IPO) subscription of the company was held between July 08 and July 19.
The company’s nine months profit after tax was BDT 167.58 million and basic earnings per share (EPS) of BDT 1.19 that ended on March 31, 2018 as against profit after tax of BDT 167.80 million and basic EPS of BDT 1.20 for the same period of the previous year.
The post-IPO EPS would be BDT 1.04 for nine months period ended on 31 March 2018.
The fund raised through the IPO will be used for purchasing machinery (89.15 percent) and bearing the expenses of the IPO process (10.85 percent), according to the IPO prospectus.
The company’s post-IPO paid-up capital is BDT 1.60 billion and authorised capital is BDT 2.10 billion.
Two companies – NBL Capital and Equity Management Ltd, and Rupali Investment – are working as the issue managers for the IPO process.
Located at Bhaluka in Mymensingh, the principal activities of the company are to carry on the business of dyeing and finishing yarn for 100 per cent export-oriented sweater industries in Bangladesh.
BBN/SSR/AD
