Parkway Packaging files to go public
Last month, the company, which operates a fully automated state-of-the-art corrugated carton manufacturing plant, applied to the Bangladesh Securities and Exchange Commission for a qualified investor offer (QIO).
Parkway Packaging and Printing PLC, a concern of DBL Group, aims to raise Tk5 crore from the capital market through entering the SME platforms of the Dhaka and Chattogram stock exchanges.
Last month, the company, which operates a fully automated state-of-the-art corrugated carton manufacturing plant, applied to the Bangladesh Securities and Exchange Commission for a qualified investor offer (QIO).
The manufacturer of cartons for ready-made garments plans to issue five lakh shares at a face value of Tk10 each to raise the funds.
A senior official of the group said, "We aim to enter the capital market to ensure compliance and meet buyer demands, which will positively impact the company's business."
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The company intends to use Tk2.94 crore as working capital for purchasing raw materials, Tk1.5 crore for investment in secondary market securities, and the remaining amount for QIO expenses.
In the July-December period of the current fiscal year, the company achieved a revenue of Tk47.52 crore, compared to Tk46.54 crore in the same period of the previous year.
During this period, its profit after tax stood at Tk7.59 crore, up from Tk5.20 crore a year ago.
Its earnings per share stood at Tk1.69 and its net asset value per share was Tk27.28 as of December 2023.
In the FY23, the company made revenue of Tk97.66 crore, which was Tk123.24 crore in the previous fiscal year.
Its profit after tax stood at Tk9.86 crore, compared to Tk14.15 crore in the FY22.
Its authorised capital is Tk150 crore and paid-up Tk45 crore, according to the company's draft prospectus.
Its total assets stood at Tk181.88 crore, while its total liability was Tk56.16 crore. At the end of December 2023, its retained earnings stood at Tk49.96 crore.
The company, which started commercial production in 2008, produces 35,000 pcs of cartons per day. The extension will increase the production capacity by almost 50%.
According to the company prospectus, the printing and packaging industry in Bangladesh is experiencing robust growth, driven by the country's increasing industrialization.
As industrial activity expands, so does the demand for printing and packaging materials.
Moreover, with the rise in industrial production comes a corresponding increase in export demand for printing and packaging products.
Salah Uddin Mahmud is a Staff Correspondent at The Business Standard who covers the stock market, insurance and the private sector.
