eGeneration makes flying debut on bourses
The company’s share price rose to Tk15 from Tk10 each
Information and technology-based company eGeneration Limited made its debut trading on Tuesday, with a 50% surge in its share price on both stock exchanges.
Early morning before the stock's debut, the bell-ringing ceremony of eGeneration took place at the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) offices in the capital.
During the trading period, its share price rose to Tk15 from Tk10 each. As per the securities rule, a newly-listed company's share price cannot rise more than 50% on the first day.
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Investors showed great interest in the company's shares on the first day of trading.
Buyers offered to buy above 1.5 crore shares of the company at Tk15 each but only 201 shares were traded on the first day at the DSE, because there were very few sellers in the market as most initial public offering (IPO) winners were reluctant to give up their shares at this price.
Most investors did not want to sell the company's shares because they expected the price of the shares to go further up.
eGeneration has raised Tk15 crore by issuing 1.5 crore shares through IPO. The company is due to use the funds to purchase business floor space, repay loans and develop digital healthcare platforms.
As of 30 June, 2019, the company's net profit was Tk10.90 crore, slightly up from Tk10.49 crore in the previous year.
During that period, its gross profit was Tk15.68 crore, which was Tk14.41 crore a year ago.
At the same time, its earnings per share stood at Tk1.82 and the net asset value per share was Tk20.56.
Shameem Ahsan, managing director of eGeneration, said, "We wanted to pave the way for other technology companies in Bangladesh to be inspired by our success, raise funds from the local market and share their accomplishments with small investors."
