New IPO Of Yeakin Polymer set to make trading debut shortly

FE Online Report

Yeakin Polymer Limited (YPL) is set to make its share trading debut shortly on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) under ‘N’ category, officials said.

 “IPO shares of Yeakin Polymer have been credited into respective beneficiary owners’ accounts on September 6 and trading of the shares of the company will begin shortly after Eid vacation,” said a DSE official.

Trading on the bourses remain closed since September 9 to September 17 on the occasion of Eid-ul-Azha, including weekly holidays and special holidays. Trading on the bourses will resume on September 18 (Sunday).

Yeakin Polymer, which received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on May 19, floated 20 million ordinary shares of Tk 10 each and raised Tk 200 million from the public using fixed price method.

IPO subscription of the Khulna-based polypropylene (PP) woven bag manufacturer was held between July 10 and July 20 for resident and non-resident Bangladeshis.

The company’s IPO subscription hit 44.55 times high as the company received above Tk 8.91 billion against the public issue of Tk 200 million. IPO lottery was held on August 10.

Yeakin Polymer is the second IPO under the fixed price method after the latest amendment to Public Issue Rules 2015.

The company will utilize the funds from the initial public offering to purchase machinery 66.88 per cent, construct a factory and administration building 26.47 per cent and IPO expenses 6.65 per cent, according to the IPO prospectus.

As per the financial statement for the year ended June 30, 2015, the company’s earnings per share (EPS) stood at Tk 1.41 and net asset value (NAV) per share of Tk 14.61.

Imperial Capital and FAS Capital Management jointly managed the Yeakin Polymer’s IPO.

The company’s pre-IPO paid-up capital is Tk 390 million and authorized capital is Tk 1,000 million, according to the IPO prospectus.

Incorporated in 2001 as a public limited company, Yeakin Polymer is engaged in manufacturing and marketing of PP Woven Bag, Fabric, and Liner. The manufacturing unit is situated at Khulna in the southwest region of Bangladesh.

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