Trading of the shares of Star Adhesives --- a concern of Star Partex Group --- will commence today (Wednesday) on the SME Platform of Dhaka Stock Exchange and Chittagong Stock Exchange.
Star Adhesives is the 12th listed company in the SME Platform. Only qualified investors (QI) are allowed to trade in the SME Platforms.
The SME Company has reported profit after tax of Tk 26.93 million for the year ended June 30, 2021, up by a whopping 205 per cent, from Tk 8.82 million in the corresponding period, according to audited annual financial statements.
The company's basic earnings per share (EPS) stood at Tk 6.05 for the year ended on June 30, 2021, as against Tk 2.76 for the year ended on June 30, 2020, said the company in a filing with the DSE on Tuesday.
However, post-QIO basic EPS for the year ended on June 30, 2021 would be Tk 1.35. Pre-QIO net asset value (NAV) per share is Tk 12.56 as on June 30, 2021 and the same is Tk 11.92, considering post-QIO.
The Bangladesh Securities and Exchange Commission (BSEC) approved the company's proposal for raising capital through qualified investors offer (QIO) on February 15.
As per the regulatory approval, Star Adhesives raised Tk 50 million by issuing 5.0 million ordinary shares of Tk 10 each under the fixed price method through QIO.
The subscription for shares of the company through electronic subscription system (ESS) was held between March 27 and March 31.
It is the second SME firm whose shares subscription was held after the securities regulator slashed drastically the minimum investment limit to Tk 2.0 million for an investor to be qualified for the SME Platforms. Earlier, the threshold was Tk 10 million.
The BSEC slashed the minimum investment limit on February 18 this year to attract more investors on the platform where the number of SME scrips is now on the rise.
The company will utilise the proceeds for factory renovation, working capital, repaying bank loans and meeting the cost of the QIO process.
AAA Finance and Investment is working as the issue manager for the QIO of the Star Adhesive.
As per the regulatory approval, the company will not be allowed to issue bonus shares in three years from the date of debut trading on SME Platform.
The company's paid-up capital is Tk 200 million, authorised capital is Tk 500 million and the total number of securities is 20 million.
Sponsor-directors own 40 per cent stake in the company while the institutional investors own 38.96 per cent and the general public 21.04 per cent as of June 30, 2021 (year-end), the DSE data shows.
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