VFS Thread Dyeing made a flying trade debut on the bourses on Sunday as its share price jumped 207 per cent on the first day of trading.
The share traded between Tk 29.50 and Tk 39 each on the Dhaka Stock Exchange (DSE), before closing at Tk 30.70 each, soaring 207 per cent, from its issue price of Tk 10 each.
It also featured in the top turnover chart on the prime bourse with 7.05 million shares worth Tk 225 million changing hands.
On the Chittagong Stock Exchange (CSE), the company's share price also jumped 204 per cent to close at Tk 30.40 each.
The debutant was also the third highest traded stock on the CSE with 2.24 million shares worth Tk 69.87 million changing hands.
An analyst said a newly listed stock is sometimes considered as an instrument for short-term speculation, and many investors want to bet on the share for short-term gain.
"So, it created hype among the investors on the first day of trading," he said.
VFS Thread Dyeing, which received initial public offering (IPO) approval from the Bangladesh Securities and Exchange Commission (BSEC) on April 03, raised a fund worth Tk 220 million from the capital market.
The company raised the amount by floating 22 million ordinary shares at an offer price of Tk 10 each under the fixed price method.
The company will utilise the IPO fund to purchase plant and machinery, repay bank loans and bear the IPO expenses.
The company also published its un-audited quarterly financial statements.
As per the un-audited financial statement in nine months for the period of July 2017-March, 2018, its net profit after tax was Tk 94.05 million, pre-IPO EPS was Tk 1.50 and post-IPO EPS was Tk 1.11.
The pre-IPO net asset value (NAV) per share was Tk 21.40 and post-IPO NAV is Tk 18.44 as of March 31, 2018.
Citizen Securities & Investment and First Security Islami Capital & Investment are jointly working as the issue managers of the company's IPO.
The company's paid-up capital is Tk 847.15 million and authorised capital is Tk 1.0 billion, while the total number of securities is 84.71 million.
The sponsor-directors own 30.90 per cent stake in the company while institutional investors own 16 per cent, foreign 18.30 per cent and the general public 34.84 per cent as on June 30, 2017, the DSE data shows.
Incorporated in Bangladesh in 2010, VFS Thread Dyeing is a 100 per cent export-oriented manufacturer of sewing thread products.
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