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BBS Cable's IPO project to start operation Jan 12

The company's share price posts 3.46pc rise


FE Report | January 10, 2019 00:00:00


Initial public offering (IPO) funded project of BBS Cables is set to start commercial operation from Saturday next which will enhance 37 per cent production capacity, officials said.

The company informed that it has imported capital machinery by utilizing IPO proceeds and the company is planning to start the commercial production from the new machinery with effect from January 12 (Saturday), said a disclosure posted on the Dhaka Stock Exchange (DSE) website on Wednesday.

The cable manufacturer raised Tk 200 million from the public by issuing 20 million ordinary shares using the fixed price method in May 2017 for acquisition of plant and machinery, partial repayment of bank loans and IPO expenses.

The current installed annual production capacity of the company is 16,600 MT as on June 30, 2018 as a result of installing the new machineries, the annual production will increase by 37 per cent (6,100 MT) that will stand up to 22,700 MT (approx.) annually, the value of which is about Tk 12 billion approximately, said the disclosure.

Following the news, its share price rose 3.46 per cent over the previous day to close at Tk 110.60 on Wednesday.

In the last one year, the company's share price hovered between Tk 70.10 and Tk 139.20 each.

The company, which was listed on the Dhaka bourse in 2017, approved 10 per cent cash and 15 per cent stock dividend for the year ended on June 30, 2018.

Its earnings per share (EPS) rose to Tk 3.06 for July-September 2018 as against Tk 1.57 for July-September 2017.

The net operating cash flow per share (NOCFPS) was Tk 2.88 for July-September 2018 as against Tk 1.81 for July-September 2017.

The net asset value (NAV) per share was Tk 27.37 as on September 30, 2018 and Tk 24.31 as on June 30, 2018.

The company's paid-up capital is Tk 1.38 billion and authorised capital is Tk 3.0 billion, while the total number of securities is 138 million.

The sponsor-directors own 33.33 per cent stake in the company, while institutional investors own 11.96 per cent, foreign investors 1.02 per cent and the general public 53.69 per cent as on November 30, 2018, the DSE data shows.

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