5 years ago

Genex Infosys jumps 465pc in debut trading

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Genex Infosys made a red-hot trading debut on Wednesday, as its shares jumped 465 per cent on the prime bourse despite a decline in its earnings per share (EPS).

The IT company's profit after tax stood at Tk 59.53 million and the basic EPS at Tk 0.97 for the July-December period of 2018 as against Tk 60.08 million (profit after tax) and Tk 0.98 (EPS) in the same period of the previous year.

The post-IPO EPS, however, will be Tk 0.73 for the six-month period ending December 2018.

The company made its share trading debut on both the stock exchanges in the country under "N" category.

On the Dhaka Stock Exchange (DSE), the company's shares traded between Tk 44 and Tk 59 before closing at Tk 56.50. The issue price of the shares was Tk 10 each.

Genex Infosys also grabbed the second spot on the DSE top ten turnover chart, with 8.15 million shares worth Tk 417 million changing hands, accounting for 5.432 per cent of the day's total turnover.

On the Chittagong Stock Exchange (CSE), the company's shares climbed 448 per cent to close at Tk 54.80.

The company also dominated the turnover chart on the CSE, with around 2.60 million shares of more than Tk 131 million changing hands.

A leading broker said investors showed great enthusiasm for the newly listed stock amid short-term speculation.

A newly listed issue is sometimes considered an instrument for short-term speculation, and many investors want to bet on the shares for short-term gain, he said.

"So, it created hype among the investors on the very first day of its trading," he added.

Genex Infosys raised a fund worth Tk 200 million from the capital market by offloading 20 million ordinary shares at an offer price of Tk 10 each under the fixed-price method.

The company's paid-up capital is Tk 816 million, authorised capital is Tk 1.0 billion and the total number of securities is 81.60 million.

The sponsor-directors own 34.46 per cent stake in the company, while institutional investors own 14.71 per cent, and the general public 50.83 per cent as of June 30, 2018.

Currently, eight IT companies are listed with the Dhaka bourse and the IT sector accounts for less than 1.0 per cent of the DSE's total market capitalisation.

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