FM Plastic backtracks from listing plan

In face of the current economic crisis, FM Plastic Industries PLC has withdrawn its qualified investor offer (QIO) application which it previously submitted to the securities regulator for the purpose of going public.

The company which earlier intended to go public now wants to discontinue the listing process, several sources at the Bangladesh Securities and Exchange Commission (BSEC) confirmed the matter to The Business Post.

The company in a letter last month had request the BSEC to take necessary steps enabling it to be listed on the SME platform of the country’s stock exchanges.

The country’s one of the leading producers of disposable plastic and food-grade products intended to raise capital worth Tk 5 crore for its business expansion through qualified investor offer (QIO).

The products of FM Plastic Industries range from cups, plates, lids, bowls, boxes, trays to blister packaging, and face masks.

The company holds the largest market share in the biscuit tray segment in the country.

In line with the BSEC (Qualified Investor Offer by Small Capital Companies) Rules, 2018, the company had planned to issue 50 lakh shares at Tk 10 each to eligible investors through the qualified investor offer.

As per its financial statements till March 31 this year, the company’s revenue stood at Tk 22.2 crore in the first nine months of FY23, which was Tk 21.4 crore in the same period the year before.

During the period, its net profit was Tk 1.9 crore, compared to Tk 2.28 crore in the nine months of FY22. FM Plastic Industries’s net asset value per share and earnings per share (EPS) were Tk 13.03 and Tk 0.89 respectively for July-March of the fiscal year 2022-23.