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Craftsman Footwear and Accessories, an export-oriented shoe manufacturer, made its trading debut on the SME platforms of the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) on Thursday.
But only one trade executed on each exchange, involving two shares.
On its first trading day, the company's stock closed at Tk 11 per share on both bourses, rising 10 per cent, the highest allowable limit on its issue price of Tk 10.
According to a stockbroker, while investors rushed to buy shares, sellers were reluctant to sell their stakes, anticipating higher future profits.
Sadat Hossain Salim, Managing Director of Craftsman Footwear, said they came to the stock market as part of the company's long-term business plans.
"Our aim is to transition from the SME platform to the main trading board in the future," he said at the trading opening ceremony.
In February, the Bangladesh Securities and Exchange Commission (BSEC) approved Craftsman Footwear's proposal to raise Tk 50 million from the stock market through qualified investors' offers.
The company issued 5 million ordinary shares at a face value of Tk 10 each under the fixed-price method, with the subscription period running from April 21 to April 25.
The company will utilise the QIO proceeds as follows: Tk 20 million for balancing, modernization, rehabilitation, and expansion (BMRE), Tk 10 million for bank loan repayment, Tk 15.48 million for working capital management, and the remaining for QIO expenses.
According to the company's financial statements for FY23, its net profit jumped 72 per cent year-on-year to Tk 42.74 million in FY23.
The company's overall sales more than doubled year-on-year to Tk 733 million in FY23 backed by higher exports. Its exports soared 237 per cent to Tk 711 million while domestic sales dropped 19 per cent to Tk 23.14 million, indicating the company is more focused on exports.
Craftsman Footwear has set a target to export shoes worth more than $100 million by the next three years. It intends to construct new production buildings and separate warehouses.
The company exports products mainly to Italy, Japan, USA, Germany, Canada, Hungry, Austria, Poland and Spain while major buyers are Hush Puppies, Bata, Tata Italia, Parrotto, Unit, Fine Boys, On Spirit, and Primadonna.
The company has two production units: Unit-1 produces for local sales while unit-2 manufacturers for exports which started operation in April 2021.
Craftsman started its operation in 2017 as a shoe manufacturer for the export market with 35 employees at a small factory unit in Joina Bazar of Sreepur Upazila in Gazipur.
Now, the company has a state-of-the-art manufacturing facility with a 100,000-square-foot factory area with more than 750 employees.
Green Delta Capital acted as the issue manager while Prime Finance Capital Management and BLI Capital worked as underwriters.
The DSE SME platform started its journey on September 30, 2021. Currently, 19 companies are listed with the DSE SME board.