BD Paints, a local paint company, will go public later this month with a goal to collect Tk12 crore through a small and medium enterprise initial public offering (SME IPO). The IPO subscription will be open from May 22 to May 26 for the purpose of raising funds. BD Paints now has 5 crore ordinary shares outstanding, with a successful capital raising at Tk10 per share for 1.2 crore shares bringing the total number of ordinary shares to 6.2 crore.
According to the IPO prospectus, the funds would be used for building and other civil works, machinery and equipment procurement, and working capital financing. Tk1.7 crore has been set aside for building and other civil works, Tk5.5 crore for machinery and equipment procurement and installation, Tk4.5 crore for operating capital to purchase raw materials, and the balance to cover IPO expenditures.
During the fiscal year 2021, the company achieved sales revenue of Tk29.4 crore, up 25.6 percent over the pandemic-hit previous fiscal year 2020. The company’s net profit for the year was Tk4.8 crore, or Tk0.77 per share, based on the post-IPO shares outstanding.
According to the essbangladesh.com website, a qualified investor can apply for the BD Paints SME IPO if they have a minimum investment of Tk20 lakh at market price in matured listed shares as of May 11. The company’s issue managers are CAPM Advisory Limited and Prime Bank Investment Ltd.
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