Navana CNG to directly offload shares Sunday
Navana CNG Limited, a sister concern of Navana Group, is going to join the Dhaka and Chittagong bourses on Sunday by offloading half of its ordinary shares directly.
The Dhaka Stock Exchange fixed the date at a meeting on its premises yesterday, DSE officials said.
The company, main line business of which is CNG (compressed natural gas) conversion and CNG re-fuelling, will offload 1.81 crore ordinary shares of Tk 10 each through direct listing method, an alternative way of enlisting profitable companies to the market that do not want to enter the IPO system.
Under direct listing method, price of a security is determined by prospective investors directly in the secondary market. It means the best value of the floated shares will go to the entrepreneurs.
It will be the first company that will join the stock market under direct listing rules this year. Prior to Navana CNG, five state-run entities -- Desco, Power Grid, Jamuna Oil, Meghna Petroleum and Titas Gas -- and two privately run organisations -- Shinepukur Ceramics and ACI Formulations -- have been listed with the bourses directly.
Navana CNG's existing paid up capital is Tk 36.30 crore and authorised capital is Tk 50 crore. It runs nine CNG conversion workshops across the country -- five in Dhaka, two in Chittagong and two each in Sylhet and Bogra.
Its earnings per share (considering net profit after tax and paid-up shares as of May 20) is Tk 4.04, according to the company fundamentals posted on the DSE website. Net asset value per share, as of March 31, is Tk 20.91.
DIRECT LISTING PROCEDURE
On the first day [Sunday], the investors will bid for shares for the first 10 minutes to build up a price.
There will no trading on the second day (Monday), and normal trading will resume on third day (Tuesday) on the public market.