BSEC asks Achia Sea Foods to explain its unusual building construction cost

The Bangladesh Securities and Exchange Commission (BSEC) has sought an explanation from Achia Sea Foods Ltd on its unusual cost for building construction.

The commission issued letters to related parties in this regard on Sunday.

According to the company prospectus, Achia Sea Foods estimated Tk4,472 per square foot as the construction cost for a 27,023 square feet two-storeyed building at its factory premises in Labanchara, Khulna. The total cost stood at Tk12.08 crore.

The fish processing plant is on the ground floor and the office is on the first floor of the building. The open roof of the building is also used for different types of freezing equipment.

There is also a tin-shed building along with a jetty ghat at the back of the factory building.

Achia Sea Foods - a shrimp producer in the frozen food processing industry - was launched on 27 December 1993.

The company completed its qualified investor offer (QIO) subscription between 19 June to 23 June last year.

Earlier, the BSEC approved the company to raise Tk15 crore from the SME platform of the Dhaka bourse to expand its business.

The company said it will use its QIO fund for machinery installation, loan repayment, and issue management.

It will not be allowed to issue bonus shares for three years after its listing on the SME platform.

AAA Finance and Investment Limited is working as the issue manager for the company.

In fiscal 2020-21, the company's earnings per share (EPS) stood at Tk1.88 and the net asset value per share at Tk17.07.

During the period, its revenue was Tk137.73 crore, which was Tk44.02 crore in the previous year.

Its net profit stood at Tk4.20 crore, which was Tk1.48 crore in the previous year.