Dhaka, Bangladesh (BBN) - Shepherd Industries is set to make its share trading debut Wednesday on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) under “N” category, officials said.
Shepherd Industries is the 47th listed company under textile sector on the DSE that accounts for 4.0 per cent of the premier bourse’s total market capitalisation.
Shepherd Industries, which received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) in November last year, floated 20 million ordinary shares at an offer price of BDT10 each and raised a fund worth BDT 200 million from the public using the fixed price method.
IPO subscription of the sweater yarn manufacturer was held between January 8 and January 16, 2017 for resident and non-resident Bangladeshis.
The company’s IPO subscription hit 54 times high as the company received about BDT 10.85 billion against IPO issue of BDT 200 million.
The company will utilize the IPO proceeds for setting up a washing plant, purchasing machinery for the washing plant, expanding the effluent treatment plant, repaying bank loans and IPO expenses.
The company’s net profit after tax was BDT 35.53 million for six month period of July-December 2016 and pre-IPO earnings per share (EPS) stood at BDT 0.34 while post-IPO earnings per share stood at Tk 0.29.
Alpha Capital Management worked as issue manager of the company’s IPO.
Located at Bhaluka in Mymensingh, Shepherd Industries is a 100 percent Taiwan invested sweater yarn manufacturer established in 2000.
The company supplies a wide range of sweater yarns and provides garment dyeing and washing services to export-oriented sweater factories in Bangladesh.
BBN/SK/AD