Lub-rref (Bangladesh), a local lubricant producer, posted higher profits for the July-December period of 2020 just before its debut on the stock market.
Lub-rref logged profits of Tk 86.61 million for the last six months of 2020, which was 13 per cent higher compared to the same period the previous year, according to data from the Dhaka Stock Exchange (DSE).
The lubricant company's basic earnings per share (EPS) stood at Tk 0.87 for July-December 2020 which was Tk 0.77 in the same period a year earlier.
However, post-IPO EPS would be Tk 0.60 for July-December 2020 period ended on 31 December 2020.
The company's profit also jumped more than 13 per cent to Tk 58.97 million in October-December period last year compared to the same period of the previous year.
The pre-IPO net asset value (NAV) per share with revaluation would be Tk 35.37 as on 31 December 2020 and the same would be Tk 34.68, considering post-IPO paid-up shares.
The company will make its shares trading debut on the Dhaka Stock Exchange and Chittagong Stock Exchange today (Tuesday) under "N" category.
Lub-rref, which products are branded as BNO Lubricants, raised Tk 1.50 billion from the capital market under the book-building method by issuing 45.24 million ordinary shares.
The stock market regulator - Bangladesh Securities and Exchange Commission (BSEC) -- approved the company's IPO proposal on November 18, last year.
Earlier the company completed electronic bidding and explored its cut-off price of shares - a requirement for going public under the book building method.
The cut-off price of Lub-rref shares was fixed at Tk 30 each through electronic bidding by eligible investors held between October 12 and October 15, 2020.
The general investors, including non-resident Bangladeshis, got IPO shares at Tk 27 each, a 10 per cent discount on the cut-off price.
The IPO proceeds will be used for expanding its existing refinery plant with an aim to meet the growing demand for lubricants from both home and abroad and repay some expensive bank loans.
Alongside the construction of a new base oil refinery at the Julda Industrial Theme Park in Chattogram, the company will expand its present factory and fit it with the means to produce a higher grade of lubricant products.
To finance the expansion, around Tk 980 million will be funded through Lub- rref's IPO proceeds.
NRB Equity Management is working as the issue manager for the company's IPO process.
Incorporated in 2001, Lub-rref (Bangladesh) commercially launched its manufacturing plant in 2006. The company imports base oil and additives to blend luboil of various formulations to cater to the needs of automotives and industries.
