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Runner Automobiles posts modest gain on debut day

The co leads DSE turnover chart


FE Report | Published: May 22, 2019 10:51:59 | Updated: May 23, 2019 11:52:17


Runner Automobiles share price soared 33 per cent on debut trading on Tuesday despite the company's earnings fell marginally, officials said.

The company's profit after tax stood at Tk 337.51 million and basic earnings per share (EPS) of Tk 3.58 for the for nine months (July 2018- March 2019) against profit after tax of Tk 349.82 million and basic EPS of Tk 3.71 for the same period of the previous year.

However, Post-IPO EPS would be Tk 3.12 for nine months (July 2018- March 2019) period ended on 31 March 2019.

The company's share price was traded between Tk 92 and Tk 107.80, before closing at Tk 99.80 on the Dhaka Stock Exchange (DSE) from its issue price of Tk 75 each.

The automobiles company also dominated the DSE turnover chart with 3.52 million shares worth Tk 354 million changing hands.

On the Chittagong Stock Exchange (CSE), the company's share price also rose 31.20 per cent to close at Tk 98.40 each, from its issue price of Tk 75.

The debutant was also the second most traded stock on the port city's bourse with shares of Tk 79.61 million changing hands.

The investors showed enthusiasm for the newly listed stock amid short-term speculation. So, the company's share price soared despite earnings declined marginally, said a leading broker.

Runner Automobiles, a flagship company of Runner Group, raised a fund worth Tk 1.0 billion by floating 13.93 million shares from the capital market under the book-building method.

The fund will be utilised for the purpose of research and development works, purchasing machinery, repaying bank loans and bearing the IPO expenses.

The IPO subscription of the company was held between January 31 and February 10.

The cut-off price of the shares of motorcycle maker fixed at Tk 75 each as discovered by eligible investors (EIs) through bidding under the book-building method.

Of 13.93 million shares, more than 8.33 million shares (60 per cent) issued to the eligible institutional investors at the cut-off price of Tk 75 each.

The remaining 5.60 million shares (40 per cent) issued to general investors through IPO at Tk 67 each, after a 10 per cent discount on the cut-off price.

IDLC Investments Limited is the issue manager of the IPO.

Runner Automobiles, which started its journey in 2000, is engaged in manufacturing two-wheelers in Bangladesh. It also started exporting motorcycles to Nepal in January 2017.

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