RAK Ceramics (Bangladesh) Limited - DSE

More documents

Recommendations

Info

Net Tangible Assets Value (M=F-I) 2,330,049,992Net Tangible Assets Value Per Share (N=M/K) 179.68Restated Net Tangible Assets Value Per Share (Q=M/O) 12.56Use of proceeds:RAK Ceramics (Bangladesh) Limited had an outstanding loan amounting to Tk.1,220,453,209 (Taka One Thousand Two Hundred Twenty Million FourHundred Fifty Three Thousand Two hundred Nine) only as on June 30, 2009from the following banks:Bank/Financial InstitutionLoan Amount (Tk.)Long Term Loan:HSBC 105,000,000Standard Chartered Bank 210,000,000Total 315,000,000Short Term Loan/Overdraft:HSBC 174,377,011Standard Chartered Bank 212,536,333Citibank N.A. 518,539,865Total 905,453,209Grand Total 1,220,453,209The company intends to use the net proceeds received from IPO (after adjustingfor IPO expenses) to pay off the loans after listing and the balance amount forworking capital, if there is any.Production Capacity and Current Utilization:Item Installed Capacity (Per day) Utilization (%) Shift basis No. of ShiftTiles22,000 sq. meter85%-90% 8 hours/shift 3 Shift/day(236,720 square feet)Sanitary Wares 2,500 Pieces 95%-100% 8 hours/shift 3 Shift/day
IPO process under Book Building Method:Valuation of RAK Share:RAK considered valuation based on P/BV to be the Primary Valuation Methodfor the company. However, they have also applied other suitable and frequentlyreferred methods, i.e. valuation based on P/E Multiple and Dividend DiscountModel (DDM), to have full spectrum of valuations.A. Primary Valuation Method: Valuation based on P/BV multiple ofsimilar stocksThe average NAV growth rate of RAK over the last five years was 18.77%. Theincreasing trend of NAV per share reflects that RAK has been consistentlyinvesting in fixed assets. Therefore, an acceptable value may be derived bymultiplying NAV by a representative P/BV multiple.Findings and Calculation of Representative P/BV MultipleCategories of Comparable CompaniesAvg.P/BVRatioAssignedWeightWeightedP/BValueCompanies having Turnover of BDT 2,000 M to 3,600 4.43 0.2 0.886MCompanies having Equity of BDT 1,750 M to 3,300 M 2.60 0.2 0.520Companies having Net Profit of BDT 270 M to 450 M 4.83 0.2 0.966Listed MNCs 4.59 0.2 0.918Similar Equity Risk Class 4.24 0.2 0.848P/E Multiple 1.00 4.14
Page 1 and 2: RAK Ceramics (Bangladesh) Limited(I
Page 3 and 4: Executive SummaryDate of Incorporat
Page 5 and 6: Directors’ involvement in other o
Page 7 and 8: Performance at a Glance:Tk. in mill
Page 9: Net Tangible Asset per Shareas on 3
Page 13 and 14: (ii)Valuation based on Dividend Dis
Page 15 and 16: Consent of the Eligible institution
Page 17 and 18: Company. If exchange rate is increa
Page 19 and 20: and, in tandem with the real estate
Page 21 and 22: Management perceptionThe Company pl

RAK Ceramics (Bangladesh) Limited - DSE

Create successful ePaper yourself

Delete template?

Save as template?