Dhaka, Bangladesh (BBN)-Ratanpur Steel Re-rolling Mills (RSRM), a sister concern of Ratanpur Group, posted modest gain in its trading debut on Monday at the bourses – Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).
Ratanpur Steel Re-rolling Mills, the steel manufactures, share rose by 93.25 percent or BDT 37.1 per share from its offer price of BDT 40 in the DSE.
Each share of the company traded between BDT 80 and BDT 67.1 on the prime bourse before closing at BDT 77.3.
In the port city bourse – CSE – each share of the company traded between BDT 79 and BDT 65 and closed at BDT 76, gaining 90 percent from its issue price of BDT 40.
It was also the most traded stock at the DSE and CSE with shares worth BDT 754.13 million and BDT 169.22 million changing hands respectively.
The company, which received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) in May, floated 25 million ordinary shares at an offer price of BDT 40, including a premium of BDT 30 for each ten taka share and raised a fund worth BDT 1.0 billion.
The fund raised through public offering to boost the capital base, repay bank loans and bear the expenses of IPO proceedings, according to the company’s IPO prospectus.
The company reported net profit BDT 123.85 million in nine months (July 2013 to March 2014) and basic EPS was BDT 4.18 as against BDT 153.69 million and basic EPS of BDT 5.19 for the same period of the previous year.
However, post IPO basic EPS would be BDT 2.27 for nine months ended on 31 March 2014 and NAV per share would be BDT 49.69 as on 31 March 2014.
BBN/BB/ANS-22Sept14-7:30pm (BST)