Web Coats stock debuts tomorrow

The Web Coats PLC, a paper product manufacturing company, is set to make its debut on the Dhaka Stock Exchange and Chittagong Stock Exchange on the SME platform tomorrow.

The company has already completed its subscription among the qualified investors, who have Tk30 lakh investment in the secondary market, from 13 February to 19 May 2024 under the fixed-price method.

The Bangladesh Securities and Exchange Commission in December last year allowed Web Coats to raise Tk5 crore from the stock market by issuing 50 lakh shares, and it will be listed on the small capital platforms of local stock exchanges.

According to the commission, Web Coats will utilise Tk2.22 crore of the raised fund for machinery, Tk1.08 crore as working capital, Tk1.43 crore for loan repayment, and the rest for QIO expenses.

In 2022-23, its revenue was Tk50 crore, and its earnings per share was Tk1.50.

The net asset value per share with revaluation is Tk15.92, and the net asset value per share without revaluation is Tk13.

After listing on the SME board, the company will not issue bonus shares for three years.

Web Coats is a 100% export-oriented paper processing unit and the principal activities of the company are to carry on the business of manufacturing and exporting all kinds of paper and board etc by producing, processing, and converting in its plant.

At present, it manufactures more than 10 paper-based products, such as self-adhesive, paper bent, tissue paper, neck board, size board, hang tag, size tag, etc.

A major portion of its revenue is incurred by selling its products as deemed exports by establishing extensive distribution channels across the country and abroad.

The company was incorporated in 2013, and started commercial production in 2014.