Dominage Steel’s share jumps on debut trading

Share prices of the Dominage Steel Building Systems, which made its debut trading today, hit the upper limit of the circuit breaker at Tk15 per share in the opening.

No sellers of the company were seen on the trading floor despite the company’s poor financial health.

In its statement on the Dhaka Stock Exchange (DSE) on Wednesday, the company reported that its earnings per share (EPS) was Tk1.42 for 2019-20 fiscal year (FY) as against Tk1.83 a year ago.

The company also reported net asset value (NAV) per share of Tk21.23 and net operating cash flow per share (NOCFPS) of Tk4.78 for 2019-20 FY, as against Tk19.81 and Tk5.4 respectively during the previous fiscal year.

However, according to its statement, the post-IPO basic EPS of the company for 2019-20 FY would be Tk0.97.

Pre-IPO net asset value (NAV) per share, considering its pre-IPO paid-up shares, is Tk21.23 at the end of 2019-20 FY, and the same is Tk17.68 while considering the post-IPO paid-up shares.

The company also said that its pre-IPO weighted average paid-up number of shares for 2019-20 FY was 6.5 crore, which was 5.27 crore for the previous FY.

It said that the post-IPO paid-up number of shares would be 9.5 crore.

Meanwhile, the board of directors of Dominage Steel has recommended a 2% cash and 8% Stock dividend for 2019-20 FY.

In its statement, the company said that the bonus shares have been recommended for utilising the retained earnings of the company as capital for ongoing operation, for example working capital.

It also says that the bonus shares have been recommended out of accumulated profit and are not declared from the capital reserve or revaluation reserve or any unrealised gain.

The company said that the bonus shares are not recommended out of profit earned prior to incorporation of the company or through reducing paid-up capital or through doing anything so that the post-dividend retained earnings become negative or a debit balance.

The board also decided to increase authorised capital from Tk100 crore to Tk150 crore by amending Clause V of the Memorandum of Association and Article 6 of the Articles of Association of the Company subject to the approval of the shareholders in the EGM.

Both the extraordinary general meeting (EGM) and the annual general meeting (AGM) of the company are scheduled to take place on December 31 on a digital platform.