Star Adhesives to be listed on SME platformadmin2019
Star Adhesive Limited, a concern of Partex Group, has decided to raise BDT 50mn through a QIO by issuing 5mn shares at BDT 10 each to use it for factory renovation and meet up working capital requirement and loan payment.
Star Adhesive Limited, a concern of Partex Group has decided to raise 5 crore which is a difficult task as the small businesses are not large enough to access the Capital Markets. Owners might not have the personal wealth to provide additional finance if required. But, as they are a concern of Partex Group, they might not face the same problem.
They will raise the funds through Qualified Investor Offer under the SME Platform. Qualified Investor Offer means to offer or securities by an issuer to the qualified investors, to be listed with any exchange in the small capital platform thereof.
AAA Finance and Investment Limited is their issue manager of Qualified Investor Offers.
The company has already filed their related documents with the relevant authorities mainly with the Bangladesh Securities and Exchange Commission and the Dhaka Stock Exchange regarding the issue.
According to their documents, the net proceeds from the qualified investor offer will be used for factory renovation. They will also be used to meet up the working capital requirement and loan payment. Working capital is used to pay short-term obligations such as accounts payable and buying inventory.
The company will issue 50 lacs shares at TK 10 each. The net profit of the company was Tk 2.6 crore in 2021 against TK 88.21 lakh in the previous year.
Their earnings per share shot up to TK 6.05 in 2021 if it can be compared with that of TK 2.76 in the previous year.
The company is already producing different types of adhesives and lacquer for backward linkage support of the leather and furniture industry as their substitute product in import.
To introduce the company, Star Adhesive Chairman Tabassum Kaiser is a director of City Bank and Partex Cables Limited while its managing director Aziz Al Kaiser is the Chairman of City of Bank and managing director of Partex Cables Limited.
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