Stocks
Dhakathai Alcomaxx files for going public
Dhakathai Alcomaxx PLC – a leading manufacturer of aluminium profiles for architectural and industrial purposes – has filed for raising Tk30 crore through an initial public offering (IPO) to expand its business and meet growing demand in the local market.
The company plans to use Tk19 crore for expansion, Tk5 crore for working capital, Tk4.71 crore for loan repayment, and Tk1.28 crore for IPO expenses.
According to its application with the Bangladesh Securities and Exchange Commission (BSEC), the manufacturer plans to issue 3 crore shares via the fixed price method.
Md Mahfug Alam, company secretary of Dhakathai Alcomaxx, told the news reporter that the demand for aluminium profiles in Bangladesh is experiencing significant growth, driven by numerous mega projects, rapid urbanisation, and ongoing construction activities.
He noted that local companies currently meet 90% of the demand, which is expanding at a rate of 15% to 20% annually, while the remaining 10% is fulfilled through imports from China.
Presently, Dhakathai Alcomaxx holds a market share of approximately 20% to 22% in the local aluminium profiles market. The company aims to capitalise on the increasing demand by expanding its market share through the introduction of compliant and high-quality products.
However, in recent years, operational costs for aluminium profiles have risen significantly due to higher raw material and fuel costs, squeezing profit margins for industry companies.
From July to December 2023, the company reported revenues of Tk213.96 crore, up from Tk193.09 crore in the same period the previous year. Its net profit after tax increased by 16% to Tk7.35 crore, up from Tk6.33 crore year-over-year.
Earnings per share for the period were Tk0.55, and the net asset value per share stood at Tk11.32 as of December 2023. Prime Bank Investment Limited is serving as the issue manager for the company.
Founded in 1997 through a collaboration of local and international entrepreneurs, Dhakathai Alcomaxx is led by Kareem Din, who serves as the director and chairman with 26 years of experience in the aluminium industry.
Industry experts have highlighted substantial investments totalling approximately Tk1,000 crore in Bangladesh’s aluminium extrusion sector.
The market demand for aluminium profiles is nearly 60,000 tonnes annually. Currently, 10 local companies together satisfy 90% of the domestic demand for these products.
Key players in the sector include KAI Bangladesh Aluminium, Dhaka Thai, PHP Group, Chung Hua Aluminium Industry, Bangladesh Thai Aluminium Ltd, and Nikki Thai Aluminium Ltd.
Moreover, the sector employs approximately 30,000 people, significantly contributing to employment opportunities in Bangladesh.
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
The Bangladesh Securities and Exchange Commission (BSEC) has removed three audit firms from its panel for their failure to secure enlistment with the Financial Reporting Council (FRC), according to a notice issued today.
The firms—A Hoque & Company, FAMES & R, and SK Barua & Company Chartered Accountants—were delisted following the FRC’s request. In December last year, the FRC published a list of enlisted audit firms and subsequently, in February, requested the BSEC to remove any firms that were not included on that list.
BSEC regulations mandate that financial statements signed by auditors outside its approved panel will not be accepted. With the removal of these three firms, the total number of audit firms on the BSEC panel has been reduced from 48 to 45.
Sources from the FRC revealed that 15-20 audit firms failed to secure enlistment last year, and approximately 45 chartered accountants are currently under restrictions imposed by the Institute of Chartered Accountants.
Although the delisted firms can no longer audit issuer companies or listed securities, they are allowed to complete audit and assurance services that were initiated before their removal, the BSEC clarified.
