Dhaka, Bangladesh (BBN)- Share prices of Shepherd Industries soared 431 per cent or BDT 43.10 each on the premier bourse on Wednesday, the debut trading day of the newly listed company.
The sweater yarn manufacturer’s share price hovered between BDT 37.10 and BDT 54.10 on the Dhaka Stock Exchange (DSE), before closing at BDT 53.10 from its offer price of BDT 10 each, according to statistics from the DSE.
At the port city’s bourse, Chittagong Stock Exchange (CSE), the company’s share price also jumped by 425 per cent to close at BDT 52.50 each from its issue price.
The debutant Shepherd also dominated the CSE’s transaction chart while it was the third highest turnover leader on the premier bourse.
At CSE about 1.94 million shares of BDT 96.33 million changing hands while 9.30 million shares worth more than BDT 460 million changing hands on the DSE.
Brokers said the investors showed higher enthusiasm surrounding debutant Shepherd Industries amid short-term speculation.
So, it created hype among the investors on the first day of trading.
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 BDT 10 each and raised a fund worth BDT 200 million from the public using the fixed price method.
The company’s net profit after tax stood at BDT 35.53 million for six month period of July-December 2016 and pre-IPO earnings per share (EPS) was BDT 0.34 while post-IPO earnings per share stood at BDT 0.29.
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.
Located at Bhaluka in Mymensingh, Shepherd Industries is a 100 per cent Taiwan invested sweater yarn manufacturer established in 2000.
BBN/SK/AD