The Financial Express

Newly listed stocks suffer the most

Newly listed stocks suffer the most

Newly listed stocks suffered the biggest hits in the stock market on Wednesday with three out of top ten losers being the newcomers.

Three newly listed companies - eGeneration, Lub-rref (Bangladesh) and NRB Commercial Bank--entered the day's top losers' list, losing 8.41 per cent, 7.76 per cent and 6.45 per cent respectively.

Newly listed Express Insurance, Energypac Power Generation, Robi Axiata, Mir Akther Hossain, Walton Hi-Tech Industries, Crystal Insurance, Dominage Steel Building Systems and Associated Oxygen also suffered losses on Wednesday.

Normally, a new company remains in limbo on the first few days upon arrival due to a lack of sellers in the midst of a huge number of buyers.

Investors lost their appetite for newly listed stocks as some had become overvalued in recent times, said an analyst at a leading brokerage firm, seeking anonymity.

He noted that investors were buying the stocks without taking into consideration their real valuation and it ultimately turned into a hindrance for the market.

Among the newcomers, eGeneration which made its shares trading debut on February 23 this year, was the day's top loser, losing 8.41 per cent to close at Tk 27.20 on Wednesday.

eGeneration, one of the leading IT consulting & software solutions companies, raised Tk 150 million under the fixed price method.

Lub-rref (Bangladesh), a local lubricant producer, was the second top loser, plunging its share price by 7.76 per cent to close at Tk 36.80 each.

Lub-rref, which products are branded as BNO Lubricants, raised Tk 1.50 billion from the capital market under the book-building method by issuing 45.24 million ordinary shares. Its offer price was Tk 27 each.

Investors continued to lose their appetite for newly listed NRB Commercial Bank as its shares price fell further by 6.45 per cent to close at Tk 11.60 on Wednesday, the third day after debut.

The bank's emerged as the fifth worst loser on the third day of debut on Wednesday. The fourth generation private commercial bank also lost more than 6.0 per cent on Tuesday.

Unlike every debutant in recent trend, the NRBC Bank failed to attract much investor in its first three trading days of debut despite its profit after tax jumped 539 per cent year-on-year to Tk 1,406.42 million in January-September, 2020.

The NRBC Bank was also the fifth most traded stock with more than 11.61 million shares worth about Tk 137 million changing hands on the Dhaka Stock Exchange (DSE) on Wednesday.

The NRB Commercial Bank raised Tk 1.20 billion by issuing 120 million ordinary shares under the fixed price method.

Shares prices of newly listed Express Insurance shed 5.73 per cent to close at Tk 24.70 each. Robi, the second largest telecom operator, shares also plunged by 4.95 per cent to close at Tk 44.20.

Shares prices of Mir Akther Hossain fell 5.48 per cent to close at Tk 67.30 each. Walton Hi-Tech's shares price also fell 2.55 per cent to close at Tk 1,200.30 each.

Energypac Power's shares lost 4.44 per cent to close at Tk 43 each. Crystal Insurance shares fell 5.96 per cent to close at Tk 34.70. Dominage Steel Building Systems lost 5.58 per cent to close at Tk 20.30 each and Associated Oxygen lost 3.26 per cent to close at Tk 35.60 each.

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