Dhaka, Bangladesh (BBN) - Zaheen Spinning Ltd (ZSL) on Wednesday made a flying trade debut on Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) by becoming the top gainer of the day.
Each share of the company closed at BDT 24.30 on the premier bourse, registering an increase of 143 percent from its initial public offering (IPO) price of BDT 10, according to DSE website.
Each share of the company traded between BDT 27 and BDT 23.2 on the DSE. Some 3.95 million shares worth BDT 98.62 million were exchanged on the trading floor, which is around 2.82 percent of the total turnover of BDT 3.50 billion.
In the port city bourse - CSE, each share of the company traded between BDT 27 and BDT 22.7 and closed at BDT 23.30, gaining 143 percent from its issue price of BDT 10.
Analysts said that a newly listed security is sometimes considered as an instrument for short-term speculation, and many investors want to bet on the shares for short-term gain.
“So, it created hype among the investors on the first day of trading.”
The company has reported net profits of BDT 64.40 million and basic EPS BDT 1.22 for the nine months (Jan 2014 to Sep 2014) as against BDT 6.84 million and basic EPS of BDT 0.13 for the same period last year.
However, considering Post-IPO 64,800,000 number of shares, the company’s basic EPS would be BDT 0.99 and NAV per share would be BDT 12.30 for nine months ended on 30 September 2014, the DSE said in a web posting.
Zaheen Spinning, which received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) in October last year, floated 12 million ordinary shares of BDT 10 each and raised a fund worth BDT 120 million from the public.
The company is using the IPO proceeds for setting up a new plant, purchase machinery and to meet the expenses of IPO proceedings, according to the company’s IPO prospectus.
Zaheen Spinning is the 40th listed company in the textile sector on the DSE that accounts for around 5.0 percent of the total market capitalisation on the premier bourse.
BBN/BB/SSR/-26Mar15-1:12 pm (BST)