Runner Automobiles has moved to produce motorcycles of 165cc to 500cc based on imported parts and raw materials, said a company statement.
The commerce ministry gave its consent to import parts and raw materials on August 30 last.
Under a move to diversify the export basket, Runner has set a target of exporting 165cc to 500cc motorcycles to Bhutan, Myanmar, north-eastern states of India, Africa and the Middle East.
As per the ministry's condition, the imported parts cannot be handed over or sold in the domestic market.
"The motorcycles above 165cc also cannot be sold in the domestic market for the time being," reads another condition of commerce ministry.
The initial target of Runner Automobiles is to make motorcycles of 200cc to 250cc. "The company gradually will produce motorcycles upto 500cc," the release also said.
Meanwhile, the securities regulator allowed Runner Automobiles on July 10 last to determine the cut-off price required to go public under the book building method.
The company will float IPO (initial public offering) under the book building method to raise a capital worth Tk 1.0 billion.
Under the book building method, institutional investors purchase shares of a company at a cut-off price determined through electronic bidding. And general investors get the shares at 10 per cent discount on the cut-off price.
Runner Automobiles will utilise the IPO fund for research and development works, purchasing machinery, repaying bank loans and bearing the IPO expense.
According to financial statements for the year ended on June 30, 2017, the company's net asset value (NAV) per share is Tk 55.70, with revaluation reserve. The value is Tk 41.94 without revaluation reserve.
And the weighted average of the EPS (earnings per share) is Tk 3.31.
The company manufactures 12 different types of motorcycles ranging between 80cc and 150cc.
