JMI Hospital shares flying high following debut
The shares closed at Tk38.8 each on Sunday — 9.92% higher than the previous trading session and 94% higher compared to the debut trading day
In just seven trading sessions after its Dhaka Stock Exchange (DSE) debut, the stock price of JMI Hospital Requisite Manufacturing kept flying high and almost doubled amid the market's volatility.
On 31 March, the newly listed medical devices manufacturer's share trading debuted at Tk20 each.
On Sunday, they closed at Tk38.8 per share — 9.92% higher than the previous trading session and 94% higher compared to the debut trading day.
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Normally, up to the stock price of Tk200 per share, a company's shares may go up by 10% of its previous day's closing price - as per the upper limit of the circuit breaker.
But if the previous day's share price exceeds Tk200, then the upper limit will be less than 10%.
It has become usual in the stock market that any newly listed firm's shares keep on increasing for a few sessions after its debut.
Then after a price hike, the investors start selling the shares for profit-taking and thus the prices go down again.
JMI Hospital's shares have risen by more than 9% in every trading session so far.
Earlier, the company had raised Tk75 crore through an initial public offering (IPO) from the stock market under the book building method.
The cut-off price had been determined at Tk25, where general investors got the shares at a 20% discount at Tk20 each in the primary market, and primary shareholders got 51 shares each against a subscription fee of Tk10,000.
In November last year, the company got the nod from the Bangladesh Securities and Exchange Commission to raise capital for purchasing machinery, land acquisition and loan repayment.
