Star Adhesives QIO subscription opens on 27 March

The qualified investor offer (QIO) subscription of Star Adhesives Ltd, a concern of Partex Star Group, will begin on 27 March and continue till 31 March.

The company received approval from the Bangladesh Securities and Exchange Commission (BSEC) on 15 February, 2022 to raise Tk5 crore from the capital market through QIO.

The company will issue 50 lakh general shares at a face value of Tk10 each, and thus join the small and medium enterprise (SME) platform of the Dhaka Stock Exchange (DSE).

Of the total amount, Star Adhesives wants to spend Tk1.51 crore for factory renovation, Tk1.8 crore for working capital, and Tk1.6 crore for repaying bank loans.

According to the company's audited financial statement as of 30 June 2021, its net profit stood at Tk2.69 crore, which was Tk0.88 crore in the previous year.

Its revenue stood at Tk41.24 crore, which was Tk25.33 crore a year ago.

At the same time, its basic earnings per share stood at Tk6.05 and net asset value per share Tk12.56.

The company will not be able to issue bonus shares in the next three years of its debut in the DSE SME platform.

Star Adhesives was incorporated in Bangladesh on 1 January 2013, with AAA Finance and Investment Ltd as its issue manager.

The firm manufactures different types of adhesives, lubricants, lacquer, spray paint, and silicon, as well as brake oil and grease.

According to the company prospectus, adhesives are used as a backward linkage material for board, door, leather, footwear, plastic, household, and paint industries in the country.

The average growth of the adhesive industry in Bangladesh is 30%.

The most common manufacturing items in adhesives are rubber adhesives, resin, PUR, distemper, solvent cement, hot melt glue, super glue, silicone, wood preservative, NC thinner, and spray paint.

Star Adhesives, Pidilite Industries, RFL, Berger Paints, Fast Group, and Bengal Group are the major players in this sector.