Aman Cotton to raise Tk 80cr
Aman Cotton Fibrous Ltd has received approval from the Bangladesh Securities and Exchange Commission to set the company's share prices under book building method.
The decision came at a meeting of the regulator at its headquarters in the capital Tuesday, according to a statement.
The book building is a process through which an issuer attempts to determine the price to offer for its security, based on demand from institutional investors.
Institutional investors will participate in the bidding to set the initial public offering (IPO) price for each share of the company.
Aman Cotton will raise Tk 80 crore through the IPO as part of its efforts to buy machinery and clear bank loans.
The net asset value of the company was Tk 35.63 as of June 2016 and weighted average earnings were Tk 3.49 per share, according to the company profile.
The net profit of the company was Tk 25.67 crore in 2015. Aman Cotton is the second company of Aman Group which is going to be listed on the stockmarket.
In 2015, Aman Feed was listed with the Dhaka Stock Exchange and retained standard category of “A” in the market by declaring 30 percent dividend in the last two years.
Aman Group plans to bring all of its subsidiaries to the stockmarket, said Rafiqul Islam, managing director of Aman Cotton.
The group has business in sectors such as garments, cement, feed, poultry and hatchery. It has set up an economic zone on a 150-acre land in Sonargaon at Narayanganj.
Aman Cotton is engaged in manufacturing of high quality yarn and sells the product in both international and local markets.
Stocks rebound after price correction
Shares at the Dhaka Stock Exchange bounced back yesterday after experiencing price correction in the last two days.
The broad index gained 35.17 points before closing at 6,184.57.
The positive movement of the indices helped generate a daily turnover of Tk 1,424 crore, up 18 percent from the previous session.
Among the major sectors, telecom, bank, and pharmaceuticals gained 2.36 percent, 1.77 percent and 0.63 percent respectively.
Some 125 securities gained, 174 declined and 32 remained unchanged. The DS30 and the DSES were up 11.42 and 6.65 points respectively.
LankaBangla Finance topped the turnover list followed by AB Bank, City Bank, First Security Islami Bank, Prime Bank and Mercantile Bank.