17 companies offer IPOs of Tk. 1000 core in 2014
When the secondary stock market experienced ups and downs in the outgoing year 2014, the primary market was steady with seeing 17 companies offering IPOs (initial public offering) to go to public for sourcing necessary funds.
The 17 companies raised nearly Taka 1000 crore from the stock market for various purposes including loan repayment, machinery purchase, new project implementation, arranging working capital, buying land and expansion of existing plant and thus production and profitability.
Last year similar number of companies issued IPOs, but the amount of money raised from the primary shares was higher than that of this year’s. The 17 companies sourced over Taka 1,200 crore through primary shares from the stock market in 2013.
This year the companies those offered IPOs are: Mozaffar Hossain Spinning Mills, AFC Agro Biotech, Emerald Oil, Hwa Well Textile, The Peninsula Chittagong, FAR Chemical, Shahjibajar Power, Khulna Printing and Packaging, Far East Knitting and Dyeing, Tung Hai Knitting, Shurwid Industries, Ratanpur Steel Rerolling Mills, Saif Powertec, Western Marine Shipyard, Matin Spinning Mills, Khan Brothers PP Woven Bag and Hamid Fabrics.
Two more companies also started processing their IPOs with opening subscriptions to public in late December. The IPOs of the two companies would be issued at the beginning of the next year.
Data available from Bangladesh Securities and Exchange Commission (BSEC) and Dhaka Stock Exchange (DSE) showed that most of the companies issued IPOs this year were from textile sector.
There were also companies from power, service, engineering, shipping and chemical sectors, but unlike previous years the companies were low-cap groups.
No mutual fund came in the primary market in the outgoing year whereas the market saw two mutual funds last year.