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Advent Pharma made a flying trading debut Thursday, as its share prices jumped four-fold, mainly due to investors' irrational hype over the new issue.
The animal healthcare drugs manufacturer's share price was traded between Tk 40.50 and Tk 55 on the Dhaka Stock Exchange (DSE), before closing at Tk 48.40. It soared 384 per cent from its issue price of Tk 10 each.
Advent Pharma also clinched the third spot on the premier bourse's transaction list with more than 6.75 million shares of nearly Tk 339 million changing hands on the day.
On the port city's bourse, the Chittagong Stock Exchange (CSE), the company's share price also jumped 378 per cent to close at Tk 47.80 each, from its offer price of Tk 10 each.
The debutant was also the second highest turnover leader on the CSE with around 1.77 million shares of Tk 87.445 million changing hands.
Advent Pharma, which received regulatory approval from Bangladesh Securities and Exchange Commission (BSEC) on January 2, raised a capital worth Tk 200 million from the public using the fixed price method by floating 20 million ordinary shares of Tk 10 each.
The IPO subscription for shares of the company was open for resident and non-resident Bangladeshis on February 11 to February 19.
The company will use the IPO fund for acquisition of machinery and equipments of Tk 81.43 million, construction of building and other civil works Tk 100.07 million and IPO expenses of Tk 18.50 million, according to IPO prospectus.
As per un-audited financial reports for October to December quarter of 2017, the company's net profit after tax stood at Tk 15.30 million, pre-IPO earnings per share (EPS) stood at Tk 0.31 and post-IPO EPS was Tk 0.22.
In six months from July to December 2017, the company's net profit after tax was Tk 31.65 million, pre-IPO EPS was Tk 0.65 and post-IPO EPS was Tk 0.46. The net asset value (NAV) per share was Tk 13.11 as of December 31, 2017.
Advent Pharma's paid-up capital is Tk 686 million and authorised capital is Tk 1.0 billion while total number of securities is 68.60 million.
The company is engaged in manufacturing, importing and marketing of animal healthcare drugs, nutritional supplements and feed additives for livestock like powder, bolus and liquid dosage forms.