Acme Pesticides approved for IPO

Acme Pesticides Ltd, an insecticide, pesticide, household products, and toiletries manufacturer, recently secured approval from securities regulator authorities to raise capital from the stock market with an initial public offering (IPO).

The Bangladesh Securities and Exchange Commission (BSEC) approved the company's IPO application in a meeting on Sunday.

The company will raise Tk30 crore issuing three crore general shares at a face value of Tk10 each, according to a BSEC press statement.

The company will use the funds for factory building and other construction, electrical installation, new plant and machinery acquisition, IPO expenses, and bank loan repayment.

BSEC said the company will not be able to issue any bonus shares for the next four years after the first trading day. Shahjalal Equity Management Ltd is the issue manager of the company.

According to company officials, Acme Pesticides mainly focuses on producing agro-based products, with demand for such products gradually increasing among farmers across the country.

In the first quarter from July-September 2020, Acme Pesticides' earnings per share (EPS) stood at Tk0.48 and net asset value (NAV) without revaluation was Tk16.84.

As a recognised provident or pension fund, each eligible investor (EI) that intends to submit an application shall maintain a minimum investment of Tk50 lakh in listed securities by the end of the fifth working day prior to the commencement of subscription.

However, for other eligible institutional investors, the market value of the listed securities investment needs to be Tk1 crore.