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Silva Pharmaceuticals made a flying trade debut on Wednesday as its share price jumped 190 per cent on the first day of trading.
The share traded between Tk 28.10 and Tk 38 each on the Dhaka Stock Exchange (DSE), before closing at Tk 29 each, soaring 190 per cent, from the issue price of Tk 10 each.
It also featured in the top ten turnover chart on the prime bourse with more than 7.16 million shares worth nearly Tk 214 million changing hands.
On the Chittagong Stock Exchange (CSE), its share price soared 184 per cent to close at Tk 28.40 each. Some 1.83 million shares worth Tk 53.85 million changing hands in the port city's bourse.
Market insiders said that despite the market fell, a section of investors showed enthusiasm for the newly listed stock amid short-term speculation. So, it created hype among the investors.
The Silva Pharma raised a capital worth Tk 300 million by offloading 30 million ordinary shares at an offer price of Tk 10 each under the fixed price method.
The IPO subscription of the company was opened on July 29. It continued until August 05, according to the DSE.
The company's IPO was oversubscribed by more than 25 times as the company received about Tk 7.73 billion against the IPO issue of Tk 300 million.
The Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of the company on June 11.
The pharmaceutical company will purchase machinery, construct building, repay bank loans and bear the IPO expenses with the fund raised from the public.
Prime Finance Capital Management, Imperial Capital and SBL Capital Management are working as managers to the issue.
The company's profit after tax stood at Tk 92.99 million and post-IPO earnings per share (EPS) was Tk 0.72 for the year ended on June 30, 2018 as against profit after tax of Tk 80.28 million in the previous year.
The company's paid-up capital is Tk 1.30 billion and authorised capital is Tk 1.50 billion, while the total number of securities is 130 million.
The sponsor-directors own 53.49 per cent stake in the company while institutions own 25.44 per cent and the general public 21.07 per cent as on June 30, 2018, the DSE data shows.