Wata Chemicals returns to DSE with a bang

Wata Chemicals share prices have skyrocketed more than eight times to Tk 487 a share, as the company declared dividends following a re-listing three weeks ago.
The chemicals company announced 30 percent stock dividends for 2013, according to a posting on the Dhaka Stock Exchange's website yesterday.
The company's net profit rose to Tk 2.97 crore last year, from Tk 2 crore in the previous year. The earnings per share stood at Tk 6.13 and net asset value per share at Tk 119.82 at the end of 2013, against Tk 4.12 and Tk 110.86 respectively in 2012.
The healthy corporate declarations pulled each share price up to Tk 515, before closing at Tk 487.10. A total of 3.02 lakh shares traded on the premier bourse, generating a turnover of Tk 11.91 crore.
After being re-listed on May 14, the company traded for only one day on May 29 at Tk 59.80 a share. Only 5,200 shares traded on that day.
Before the re-listing, Wata Chemicals remained on the OTC (over-the-counter) market for four and a half years. In 2009, the DSE had transferred the company to the OTC, a separate trading floor for junk shares.
The OTC market is meant for those companies that are not in operation, have failed to hold annual general meetings, declare dividends or did not convert their paper shares to electronic ones.
The DSE gave a nod to Wata Chemicals for a re-listing on the main market on May 8; the company had applied for a re-listing after becoming regular in holding AGMs and paying dividends to shareholders.
Wata Chemicals, listed on the stockmarket in 1992, began holding AGMs regularly and paying dividends to shareholders a year after it was de-listed from the main market. The company disbursed 20 percent stock dividends in 2012, 12 percent cash dividends in 2011 and 10 percent cash dividends in 2010.