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ML Dyeing Limited's share price jumped 142 per cent on the first day of trading on Monday despite the market continued to fall for the fourth straight session.
The share traded between Tk 10 and Tk 31.90 each on the Dhaka Stock Exchange (DSE), before closing at Tk 24.20 each, rising 142 per cent, from the issue price of Tk 10 each.
It also featured in the top ten turnover chart on the prime bourse with 6.14 million shares worth Tk 157.50 million changing hands.
On the Chittagong Stock Exchange (CSE), its share price rose 139 per cent to close at Tk 23.90 each. Some 1.64 million shares worth Tk 41.43 million changing hands in the port city's bourse.
Brokers said despite the market continued to fall, a section of investors showed enthusiasm for the newly listed stock amid short-term speculation.
ML Dyeing, which received approval from the Bangladesh Securities and Exchange Commission (BSEC) on May 14, raised a capital worth Tk 200 million from the capital market.
Using the fixed price method, the company offloaded 20 million ordinary shares at an offer price of Tk 10 each.
The initial public offering (IPO) subscription of the company was held between July 08 and July 19.
The company's nine months profit after tax was Tk 167.58 million and basic earnings per share (EPS) of Tk 1.19 that ended on March 31, 2018 as against profit after tax of Tk 167.80 million and basic EPS of Tk 1.20 for the same period of the previous year.
The post-IPO EPS would be Tk 1.04 for nine months period ended on 31 March 2018.
The fund raised through the IPO will be used for purchasing machinery (89.15 per cent) and bearing the expenses of the IPO process (10.85 per cent), according to the IPO prospectus.
Two companies - NBL Capital and Equity Management Ltd, and Rupali Investment - are working as the issue managers for the IPO process.
The company's paid-up capital is Tk 1.60 billion and authorised capital is Tk 2.10 billion while total number of securities is 160.41 million.
The sponsor-directors own 31.40 per cent stake in the company while institutional investors 25.67 per cent, foreign 21.89 per cent and the general public 21.04 per cent as on June 30, 2017, the DSE data shows.
Located at Bhaluka in Mymensingh, the principal activities of the company are to carry on the business of dyeing and finishing yarn for 100 per cent export-oriented sweater industries in Bangladesh.