Trading of the shares of Star Adhesives -- a concern of Star Partex Group -- will commence on the SME Platform of the Dhaka Stock Exchange and Chittagong Stock Exchange on Wednesday.
Star Adhesives will be the 12th listed company on the SME Platform. Only qualified investors (QI) are allowed to trade on the SME Platforms.
The Bangladesh Securities and Exchange Commission (BSEC), on February 15, approved the company’s proposal for raising capital through qualified investor offer (QIO).
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 the electronic subscription system (ESS) was held between March 27 and March 31.
The company will utilise the proceeds for factory renovation, working capital, repaying bank loans and meeting the cost of the QIO process.
The company has reported its basic earnings per share (EPS) at Tk 6.05 while the diluted EPS stood at Tk 1.80 for July 1, 2020, to June 30, 2021.
For the same period, the company’s net asset value (NAV) without revaluation reserve stood at Tk 12.56.
AAA Finance and Investment is working as the issue manager for the QIO of the Star Adhesive.
The company will not be allowed to issue bonus shares for three years from the date of debut trading on the SME Platform, as per the regulatory approval.
Incorporated in 2013, the firm manufactures different types of adhesives, lubricants, lacquer, spray paint, and also produces brake oil and grease.
Adhesives are used as a backward linkage material for board, door, leather, footwear, plastic and paint industries in the country, according to the company’s prospectus.