• Wednesday, March 04, 2015

Western Marine goes for IPO

Star Business Report

The Bangladesh Securities and Exchange Commission yesterday gave the go-ahead to Western Marine Shipyard to raise Tk 157.50 crore from the capital market.
Following the fixed price method, the company is set to float 4.50 crore of ordinary shares worth Tk 10 each at Tk 35, including Tk 25 as premium.
The shipbuilder will use the fund from the initial public offering for infrastructure development and bank loan repayment, the regulator said in a statement.
The company's five year's weighted average earnings per share, as of June 2013, stood at Tk 3.87, with a re-valued net asset value per share of Tk 40.27.
Prime Finance Capital Management, ICB Capital Management and EC Securities would be the issue managers of the IPO.
AAA Consultants and Financial Advisers will manage the IPO, prospectus of which was approved at a meeting presided over by BSEC Chairman Khairul Hossain.
Meanwhile, the BSEC formed a two-member committee to investigate the abnormal share price hike of Wata Chemicals and submit a report in the next ten days.

Following its announcement of 30 percent stock dividends for 2013 on Monday, the company's share price leapt more than eight times to Tk 487.
Wata Chemicals's net profit in 2013 rose 48.5 percent year-on-year to Tk 2.97 crore. At the end of last year, its earnings per share stood at Tk 6.13 and net asset value per share at Tk 119.82, against Tk 4.12 and Tk 110.86 respectively in 2012.
But after being re-listed on May 14, the company was traded for only one day on May 29 at Tk 59.80 a share. Only 5,200 shares traded on that day.
Before the re-listing, Wata Chemicals remained on the over-the-counter market for four and a half years. In 2009, the DSE had transferred the company to the OTC, a separate trading floor for junk shares.
The BSEC also formed a three-member body to prepare guidelines on venture capital and private equity, and instructed the panel to submit a report within the next one month.

Published: 12:00 am Wednesday, June 04, 2014

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