Mohammad Mufazzal
Runner Automobiles, a local manufacturer, has planned a raise a fund worth Tk 1.0 billion by floating IPO (initial public offering) under the book building method to develop new models.
The company will hold its road show tomorrow (October 19) to fulfill the requirement of book building method.
According to company's expansion plan, of the total IPO fund, Tk 670 million will be used to develop new models of 2 wheelers in the range of 110cc to 150cc as well as the development of existing 800cc to 100cc.
Some Tk 330 million will go for loan repayment and the cost of IPO processing will be met up by the remaining Tk 40 million.
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As per the company's audited financial statement for the year ended on June 30, 2016, the consolidated earnings per share (EPS) has stood at above Tk 2.77, whereas the net asset value (NAV) per share was Tk 52.43.
The company's basic EPS was Tk 3.19 for the FY 2014-15 and Tk 2.17 for the FY 2013-14.
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The total cost of the expansion project, which will be implemented with IPO fund, would be Tk 787 million, according to the company's IPO prospectus.
"The new design of motorcycles will be marketed within 19 months of obtaining IPO proceeds and the expansion through this project will increase the company's overall profitability," the company's IPO prospectus said.
The company reported its sales revenue of above Tk 1.55 billion for the year ended on June 30, 2016, above Tk 2.25 billion for the year ended on June 30, 2015, above Tk 1.77 billion for the year ended on June 30, 2014, above Tk 1.69 billion for the year ended on June 30, 2013 and above Tk 2.05 billion for the year ended on June 30, 2016.
mufazzal.fe@gmail.com
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