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Public subscription of SK Trims to start May 14

FE Report | May 05, 2018 00:00:00

The public subscription of SK Trims and Industries will start on May 14 and will be continued till May 22.

SK Trims, which received BSEC approval in February, is set to collect Tk 300 million through IPO under the fixed price method by floating its 30 million shares at an issue price of Tk 10 each.

A market lot is 500 shares and the required amount (per lot) of foreign currency for NRBs and foreign applicants for IPO of the company is US$ 60.43 or GBP 42.71 or EUR 49.11, the DSE data shows.

The company will use the IPO proceeds to purchase capital machinery and equipment, construct building and meet IPO expenses.

As per the entity's audited financial statements for the year ended on June 30, 2017, the company's net asset value per share and weighted average earnings per share are Tk 12.79 and Tk 1.31 respectively.

SK Trims & Industries, which started its commercial operation in 2014, engaged in manufacturing of all kinds of swing thread, elastic, poly, carton, photo card, back board, bar code etc for export-oriented garments industry.

Earlier, public subscription of Bashundhara Paper Mills began recently for raising Tk 2.0 billion from the capital market under the book-building method.

The initial public offering (IPO) subscription of the company will remain open till May 09 for resident and non-resident Bangladeshis.

Bashundhara Paper Mills received the regulatory approval from Bangladesh Securities and Exchange Commission (BSEC) on August 27 to conduct the electronic bidding for determining the cut-off price for its IPO.

The company conducted electronic bidding in October 2017 and the cut-off price has been fixed at Tk 80 each, including a premium of Tk 70 for each Tk 10 share for the eligible institutional investors.

The company is set to float about 26.03 million shares, of which 60 per cent or 15.62 million shares to be issued to the eligible investors at cut-off price of Tk 80 each.

Remaining 10.41 million shares will be sold to general shareholders, including non-resident Bangladeshis, at 10 per cent discount on cut-off price, meaning the general investors will get each share of the company at Tk 72 each, as per the revised book-building method.

A market lot is 100 shares and the required amount (per lot) of foreign currency for NRBs and foreign applicants for IPO of the company is US$ 87.01 or GBP 62.28 or EUR 70.98, according to Dhaka Stock Exchange (DSE).

The company's IPO fund will be used for expansion of business activities and purchase machineries about Tk 1.35 billion, to repay bank loans of about Tk 600 million and to bear IPO expenses about Tk 50 million, according to the IPO prospectus.

According to financial statement for the year ended on June 30, 2016, the company's net asset value

(NAV) per share (EPS) is Tk 30.49, including revaluation reserve, whereas the value is Tk 15.79 without revaluation reserve.

The weighted average of earnings per share (EPS) was Tk 1.46 for the year ended on June 30, 2016.

Bashundhara Paper Mills produces different types of papers such as writing and printing papers, white printing papers, photocopy and sanitary papers, multipurpose papers, colour printing papers, ledger printing papers and bidi papers.

AAA Finance & Investment is working as issue manager of Bashundhara Paper Mills.

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