Star Adhesives Ltd wants to enter the SME platform of the Dhaka Stock Exchange (DSE) to raise Tk5 crore for business expansion.
It will issue 50 lakh general shares through a qualified investors offer (QIO).
The small-cap company has applied to the Bangladesh Securities and Exchange Commission (BSEC) for approval.
Incorporated in 2013, Star Adhesives manufacture different types of adhesives, lubricants, lacquer, spray paint, and silicon, the brand name of the product is "star bond".
It wants to spend Tk1.51 crore on factory renovation, Tk1.80 crore as working capital, and Tk1.60 crore for bank loan repayment.
According to an audited financial statement till 30 June 2021, its net profit was Tk2.69 crore, which was Tk0.88 crore in the previous fiscal year.
Its sales revenue was Tk41.24 crore, which was at Tk25.33 crore a year ago.
At the same time, its basic earnings per share stood at Tk6.05 and the net asset value per share was Tk12.56.
As per the prospectus, the company is using backward linkage materials for board, door, leather, footwear, plastic, household, and paint industries in the country.
Adhesives are one of the most prospective industries and the sector has enough scope in Bangladesh.
The average growth of the adhesive industry in Bangladesh is 30%.
The most common manufacturing item are rubber adhesive, resin adhesive, PUR adhesives, distemper adhesive, solvent cement, hot melt glue, super glue, silicone, wood preservative, NC thinner, spray paint.
Pidilite Industries, Star Adhesives, RFL, Berger Paints, Fast Group, Bengal Group are the major players in this sector.
There are around 150 firms engaged in manufacturing adhesives, according to Bangladesh Adhesive Manufacturers Association.