BSS, Dhaka :
The outgoing financial year 2014-15 (FY15) was apparently stable for the primary share market as 16 companies offered IPOs (initial public offering) to go to public for sourcing necessary funds.
The 16 companies raised Taka 1117 crore 15 lakh 67 thousand from the stock market from July 2014 to June 30 this year. The major purposes of issuing the IPOs included loan repayment, machinery purchase, new project implementation, arranging working capital, buying land and expansion of existing plant and thus production and profitability.
The number of companies offering IPOs in the previous 2013-14 fiscal year (FY14) was also 16, but the amount of money the companies raised through the IPOs was Taka 933 crore 89 lakh 50 thousand, according to IPO archive of Dhaka Stock Exchange (DSE).
The flow of IPOs in term of their offering price rose by 19.62 percent in FY15. The IPO issuing 16 companies are: Ratanpur Steel Re-Rolling Mills Limited, Saif Powertec Limited, Western Marine Shipyard Limited, Khan Brothers PP Woven Bag Industries Limited, Hamid Fabrics Limited, Zaheen Spinning Limited, Asian Tiger Sandhani Life Growth Fund, Shasha Denims Limited, IFAD Autos Limited, C & A Textiles Limited, National Feed Mill Limited, Tosrifa Industries Limited, Bangladesh Steel Re-Rolling Mills Limited, Aman Feed Limited and Olympic Accessories Limited.
Another company, United Power Generation & Distribution Company Limited, raised Taka 237.50 crore by offering IPOs under book building system, a relatively new process in Bangladesh by which institutional investors buy shares at a price determined by the underwriter of the issue.
Besides the 16 companies, Bangladesh National Insurance Company Limited will start IPO subscription on Tuesday, the last day of the FY15.
The companies issued IPOs in the fiscal year, ending on June 30, were from textile, power, shipping, engineering and manufacturing sectors. A mutual fund also came in the primary market. Last year market did not see any mutual fund.
Out of the 16 companies, four offered IPOs during January-March quarter, ignoring the countrywide repeated strike and blockade, called by BNP-Jamaat alliance during the period.
