Kay & Que's share trading volume surged by over 70 per cent on Sunday following the news that it had secured a deal to sell Starlink internet connections in the country.
The listed IT company on Thursday disclosed that it had become the sales agent for Starlink Satellite Internet Service in Bangladesh, a move expected to increase the company's revenue and income in the coming quarters.
Sunday was the first trading day after the announcement. The volume of trading jumped to 0.40 million on Sunday from 0.23 million on Thursday.
Investor enthusiasm surrounding the stock boosted its price by 8.74 per cent to Tk 434 per share on Sunday. After the price surge, the price-to-earnings ratio (P/E ratio) stood at 37.22 based on the latest unaudited financial statement.
Kay & Que, belonging to the conglomerate Multimode Group owned by BNP Vice Chairman Abdul Awal Mintoo, currently earns revenue by selling fuel through its CNG filling stations and from IT services.
According to the disclosure, Kay & Que has executed a sales agent agreement with Bangladesh Satellite Company Limited (BSCL), under which it has been appointed as a countrywide sales agent for Starlink Satellite Internet Service.
The company management expects that this strategic engagement will have a positive impact on business operations and revenue generation in the coming quarters.
"We will get 2 per cent on data sales and 7 per cent on hardware sales for Starlink connections," Kazi Ekramul Hoque, chief financial officer of the company, told the FE.
Starlink offers two main residential packages-Residential Lite at Tk 4,200 per month and Residential Standard at Tk 6,000 per month-both featuring unlimited high-speed data. Users must bear a one-time hardware kit cost of approximately Tk 47,000.
Kay & Que (Bangladesh) was originally a manufacturer of carbon rods, coal tar, and pesticides, but those operations were closed due to economic and supply constraints.
After a merger with MultiSourcing Limited, an ICT firm, Kay & Que began providing information technology and digital solutions.
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