FM Plastic withdraws SME board listing application
In the first nine months of the last fiscal year, the revenue of the company stood at Tk22.2 crore
FM Plastic Industries PLC has withdrawn its application for a qualified investor offer (QIO), as the company now plans to arrange funds for business expansion from other sources, according to an official at the issue manager.
The company wrote late last month to the Bangladesh Securities and Exchange Commission (BSEC) seeking to withdraw from the QIO, according to a BSEC official.
He said that the commission did not cancel the QIO.
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In July, the company applied to the commission to raise Tk5 crore by issuing 50 lakh ordinary shares on the SME platform of the stock market.
The BSEC officials said the company now expects foreign funds to finance its expansion, adding that it is willing to enter the main market through a fresh application.
The products of FM Plastic Industries range from cups, plates, lids, bowls, boxes, and trays to blister packaging and face masks. The company holds the largest market share in the biscuit tray segment in the country.
In the first nine months of the last fiscal year, the revenue of the company stood at Tk22.2 crore, which was Tk21.4 crore in the same period of the previous year. Its net profit was Tk1.9 crore, which was Tk2.28 crore a year ago.
Its earnings per share were Tk0.89 and its net asset value per share was Tk13.03 at the end of March 2023.
As per the company's draft prospectuses, it is leveraging the growing demand for disposable plastic and food-grade products in the country, driven by increasing consumption of fast-moving consumer goods such as biscuits, cake, ice cream, packaged beverages, coffee, tea, and ready-to-eat foods.
The factory of the company is situated in Shibpur, Narsingdi.
LankaBangla Investments Limited was the issue manager of the company.
FM Plastic Industries' largest customer is Olympic Industries, the market leader and fastest-growing branded biscuit producer in the country.
The company's other notable customers are Reedisha Food & Beverage, Dekko Foods, New Zealand Dairy Products Bangladesh, Orion Pharma, United Hospital, Square Pharmaceuticals, ACI Logistics, and Marico Bangladesh.
