MK Footwear makes debut on SME board today

MK Footwear is set to begin trading on the SME platform of the Dhaka Stock Exchange and the Chittagong Stock Exchange today (Monday).

The 100 per cent export-oriented footwear maker raised Tk 100 million through a qualified investors offer (QIO) in the middle of this month for business expansion. It is the 17th listed company on the platform.

Earlier in February, the Bangladesh Securities and Exchange Commission (BSEC) allowed the company to raise the said amount by issuing 10 million ordinary shares at a face value of Tk 10 each.

Share subscription period of the company was between June 11 and June 15 while each qualified investor got 361 ordinary shares on a pro-rata basis.

The company's QIO was oversubscribed by more than 55 times as the company received Tk 5.53 billion against shares worth Tk 100 million.

The footwear maker will utilise the proceeds for procurement of machinery, according to the prospectus.

The company's net profit jumped 854 per cent year-on-year to Tk 103.09 million for FY22. Its export turnover escalated 190 per cent year-on-year to Tk 1.26 billion in the same financial year.

The post-QIO basic EPS stands at Tk 2.15. The company's net asset value per share was Tk 12.95, before revaluation, until the end of June 2022.

The company will not be able to issue stock dividend within three years after the debut trading on the SME platform, according to a regulatory provision.

Alpha Capital Management is working as the issue manager for the company's QIO process.

Having started commercial operation in 2020, it exports shoes to the Netherlands, Spain, Sweden, Switzerland, Canada, Germany, and Brazil, according to the QIO prospectus.

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