Esquire price continues to decline

FE Report | Published: April 18, 2019 10:46:33 | Updated: April 20, 2019 13:49:13

The share price of Esquire Knit Composite, which went public with premium, continues to decline and hovered below offer price within five days of debut trading.

On Wednesday, the company's share price closed at Tk 42 each, 6.66 per cent lower than the cut-off price of Tk 45 approved by the regulator against the face value of per share (Tk ten).

On the second day of debut trading executed on April 9 last, the company's share price went down below the cut-off price.

On April 10, the second day of debut trading, the share company's trading closed at Tk 43.30 each with a loss of 3.77 per cent or Tk 1.70.

Later, the company's share price declined for three sessions, out of five sessions, and closed at Tk 42 each on Wednesday with a loss of 6.66 per cent from the cut-off price.

After the regulatory approval to the IPO (initial public offering) proposal, institutional investors purchased 60 per cent shares of Esquire Knit Composite at the cut-off price of Tk 45.

And the general investors got remaining 40 per cent shares at Tk 40 each, with 10 per cent discount on cut off price.

Esquire Knit Composite, raised a capital worth Tk 1.50 billion issuing 34.89 million ordinary shares under the book building method.

While going public, the company reported its basic earnings per share (EPS) of Tk 3.44 and the net asset value (NAV), (with revaluation), Tk 49.27 per share at the end of June 30, 2018.


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