Textile producer Tung Hai Knitting and Dyeing will make debut trading on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) today (Monday) under 'N' category, officials said.
Tung Hai Knitting and Dyeing is the 36th listed firm under the textile sector in the Dhaka bourse that accounts for around 4.0 per cent of the premier bourse's total market capitalisation. It is the 31st listed company on the CSE under the textile and clothing sector.
The DSE trading code for the company is "TUNGHAI" and DSE company code is 17463 while CSE scrip ID is 12051 and scrip code is "TUNGHAI". A market lot is 500 shares.
Using the fixed price method, the textile producer raised Tk 350 million from the public by floating 35 million ordinary shares of Tk 10 each.
The public subscription of the company was held from May 18 to May 22 for resident Bangladeshis while it continued till May 31 for non-resident Bangladeshis.
The company's IPO subscription was oversubscribed by 25 times as the it received over Tk 8.70 billion against its demand offer of Tk 350 million. The IPO lottery was held on July 17, this year.
AFC Capital and Imperial Capital jointly managed the Tung Hai Knitting's initial public offering, and the company said the proceeds are being used for meeting working capital needs, purchasing machinery and repaying bank loans.
The company has reported its profit after tax Tk 12.25 million and basic EPS Tk 0.27 for three months to March as against Tk 11.60 million and basic EPS of Tk 0.26 for the same period of the previous year.
However, considering post-IPO 80,130,000 number of shares, the company's basic EPS for three months ended on 31 March 2014 would be Tk 0.15 and NAV per share would be Tk 13.03.
The stock market regulator Bangladesh Securities and Exchange Commission (BSEC) approved the company's IPO prospectus on February 18, 2014. The company got listing approval from the DSE and CSE on August 14 and August 18 respectively.
Tung Hai Knitting, an arm of Tung Hai Group, is a leading manufacturer and exporter of knitted sweaters and jerseys, according to the group's website. With an annual group turnover of around US$50 million, the company sells its products to leading global retailers such as Inditex and Primark.
The 10-year-old firm employs 3,500 people and its factory is located in Zirani, Shibrampur.
