Dominage Steel to make its stock market debut Wednesday
The shares of the company were credited to respective BO accounts on 26 November
Dominage Steel Building Systems Limited will start trading shares on both the country's stock exchanges from 2 December under Category "N."
Meanwhile, the shares of the company, which is engaged in the steel building structure or prefabricated steel structure business, were credited to respective beneficiary owner (BO) accounts on 26 November.
Dominage Steel, which completed its initial public offering (IPO) subscription from 19-25 October, held an IPO lottery online on 16 November, 2020.
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Earlier in August, the Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal, allowing the company to raise Tk30 crore by issuing three crore shares.
Dominage Steel will spend the funds on constructing a building as well as buying electrical equipment and new machinery. Each of the shares will have a face value of Tk10.
According to the audited financial statement for the year that ended on 30 June, 2019, the earnings per share (EPS) of the company were Tk1.49 and the net asset value per share was Tk19.81.
The weighted average EPS of the company in the last five years stood at Tk1.47.
Dominage Steel recommended a 2% cash and an 8% stock dividend for its shareholders for the year ending on 30 June, 2020.
During the period, the company's EPS was Tk1.42 and net asset value per share was Tk21.23.
The company has also decided to increase its authorised capital from Tk100 crore to Tk150 crore by amending the memorandum of association and the articles of association of the company subject to the approval of the shareholders.
Shahjalal Equity Management is the issue manager of Dominage Steel.
Steel structure buildings are in high demand in Bangladesh's construction sector as they need little investment and time yet provide great safety.
The high resale value of steel structures also drives their popularity.
Local steel building makers are expecting a bright future for steel structure buildings as an increasing number of conglomerates, including foreign companies, are setting up such structures for industrial use.
