BD Paints, a local paint manufacturer, is going public with its plan to raise Tk12 crore under the small and medium enterprise initial public offering (SME IPO) later this month.
The IPO subscription will remain open from May 22 and continue till May 26 for raising the amount.
BD Paints currently has 5 crore ordinary shares outstanding and a successful capital raising at Tk10 per share for 1.2 crore shares will result in a total of 6.2 crore ordinary shares.
The company will use the capital for construction and other civil works, acquisition of machinery, equipment and to finance its working capital, according to the IPO prospectus.
An allocation of Tk1.7 crore has been fixed for construction and other civil works, Tk5.5 crore for acquisition and installation of machinery and equipment, and Tk4.5 crore for working capital in order to purchase raw materials while the rest to meet up the IPO expenses.
The company generated a sales revenue of Tk29.4 crore during the fiscal year 2021, registering a growth of 25.6% over the pandemic-hit previous fiscal year 2020.
Net profit for the year stood at Tk4.8 crore which translates to an earning per share of Tk0.77 based on the post-IPO shares outstanding.
A qualified investor will be able to apply for the BD Paints SME IPO if they maintain a minimum investment of Tk20 lakh at market price in matured listed securities as of May 11, according to the essbangladesh.com website.
CAPM Advisory Limited and Prime Bank Investment Ltd are the issue managers for the company.
