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Monno Jute Stafflers became the most valued stock on the Dhaka Stock Exchange (DSE) as its share price reached as high as Tk 5,634.20 per share on Wednesday.
The company's share trading was suspended on Thursday due to the record date.
The company's share price soared more than three times within six months since May 15 when the share was traded at Tk 1765.40. On Wednesday, the share closed at Tk 5,634.20.
In the last one year, the price of each share of the low-cap company ranged between Tk 638 and Tk 5634.20.
Market insiders said such a massive spike in value is nothing but speculative.
On October 25, the board of directors of Monno Jute recommended a 350 per cent stock dividend for the year ending on June 30, 2018.
"The company's share price will come down after price adjustment on the record date for the stock dividend," said a leading broker.
The company's paid-up capital is only Tk 4.60 million and authorised capital is Tk 1.0 billion, while the number of securities is 460,000.
Monno Welfare Foundation, one of the corporate directors of the company, on Tuesday declared to sell 25,000 shares, out of its total holding of 156,492 shares of the company, in the block market.
Monno June's dividend is the third highest stock dividend recommended so far by any listed company in the history of Bangladesh's capital market, according to DSE.
Stylecraft, a textile company, has recommended a record 410 per cent stock dividend for the year ending on June 30, 2018 and Dutch-Bangla Bank disbursed 394.17 per cent stock dividend in 2007.
Monno Jute has also reported the earnings per share (EPS) at Tk 8.74, net asset value (NAV) per share at Tk 53.30 and net operating cash flow per share (NOCFPS) at Tk 69.68 for the year ending on June 30, 2018 as against Tk 0.57, Tk 52.25 and minus Tk 96.16 respectively for the same period of the previous year.
The company has also said its production has increased following an overhaul of the factory machinery and installation of the new machinery.
As a result, the company's sales have increased and total expenditure of the company decreased while the earning per share has increased for the year ending on June 30, 2018, said the company.
The company, which was listed on the Dhaka bourse in 1982, disbursed 15 per cent stock dividend in 2017.
The sponsor-directors own 55.90 per cent stake in the company, while institutional investors own 4.05 per cent, foreign investors 0.01 per cent and the general public 40.04 per cent as on October 31, 2016.