Khan Brothers PP Woven Bag Industries Tuesday made a flying trade debut on the stock exchanges by becoming the top gainer and turnover leader of the day.
Listed with an offer value of Tk 10 each, Khan Brothers PP Woven Bag Industries shares traded between Tk 80 and Tk 47 and closed at Tk 76.6, soaring 666 per cent on the Dhaka Stock Exchange (DSE).
A total of 9.62 million shares worth Tk 588.98 million changed hands in the premier bourse, securing the company top position on the turnover leaders' list.
A total of 14 companies were listed in the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) this year as on Tuesday in 2014. Of them, Khan Brothers PP Woven Bag Industries is the highest gainer on debut day in 2014.
Khan Brothers PP Woven Bag Industries is the 10th company listed in the miscellaneous category, which accounts for more than 2 per cent of the total market capitalisation on the DSE.
In the port city bourse - CSE, each share of the company ranged between Tk 80 and 50 and closed at Tk 75.5, gaining 655 per cent from its issue price of Tk 10.
The company, which received regulatory approval from the Bangladesh Securities and Exchange Commission in June, floated 20 million ordinary shares at an offer price of Tk 10 and raised a fund worth Tk 200 million from the public. A market lot is 500 shares.
The IPO proceeds are being used for expansion of business 81.29 per cent, repayment of long-term loan 10.50 per cent and working capital purpose 8.21 per cent, according to the company's prospectus.
"The new issue -- Khan Brothers PP Woven Bag Industries attracted the investors most as the company came to with a face value," said an analyst.
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, he said. "So, it created hype among the investors on the first day of trading."
Meanwhile, the board of directors of the new comer Tuesday declared 10 per cent stock dividend for the year ended 30 June 2014.
The company has also reported NPAT of Tk 74.38 million, EPS of Tk. 1.71, NAV per share of Tk 15.85 and NOCFPS of Tk 1.20 for the year ended on 30 June 2014.
The company provides innovative packaging solutions for different industries by manufacturing tailor made polypropylene fabrics, polypropylene woven bags and polypropylene woven sacks, according to the company's website.
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