VFS Thread Dyeing has made a flying trading debut on stock exchanges today (Sunday) under the “N” category as its share price jumped three-fold within first hour of trading.
In the Dhaka Stock Exchange (DSE), each share of the company traded between Tk 31 and Tk 39 during the first hour of trading and reached at Tk 31.40 at 11:30am, soaring by 214 per cent from its issue price of Tk 10 each.
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’s public subscription was held on June 24 to July 02 last.
It will utilise the IPO fund to purchase plant and machinery, repay bank loans, and bear the IPO expenses.
VFS Thread also published its un-audited quarterly financial statements on Thursday last.
As per the un-audited financial statement in nine months for the period of July 2017-March 2018, the company's 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.
