14 firms raise Tk 5.71b through IPOs in current fiscal

FE Online Report | Published: June 04, 2019 14:09:38 | Updated: June 04, 2019 18:19:03

Thirteen companies and one mutual fund raised an aggregate amount of Tk 5.71 billion by floating IPOs in the past 11 months of the fiscal year 2018-19 (FY19).

Fundraising by companies through IPOs rose 5.54 per cent in the current fiscal compared to the same period in the previous fiscal.

In the fiscal year 2017-18 (FY18), nine companies and two mutual funds raised a total of Tk 5.41 billion through IPOs, according to the DSE data.

The newly listed companies follow two methods -- fixed price and book-building -- in issuing IPOs in the country’s capital market.

Two companies that used book-building method were Esquire Knit Composite and Runner Automobiles.

Companies that intend to offer primary shares with premium prices followed the book building method to raise capital from public.

Eleven companies that raised funds using fixed-price method include VFS Thread Dyeing, ML Dyeing, Silva Pharma, Indo-Bangla Pharma, Kattali Textile, SS Steel, Genex Infosys, New Line Clothings, Silco Pharma, Coppertech Industries and Sea Pearl Beach & Resort. One mutual fund was SEML FBLSL Growth Fund.

Most of the funds, raised through IPOs, were meant for business expansion, repayment of loans and supporting working capital requirements.


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