DBL’s Parkway Packaging eyes Tk78cr IPO with Tk30 premium

It plans to issue 1.95 crore shares under the fixed-price method and list on the stock market’s main board.

Parkway Packaging and Printing Ltd, a concern of DBL Group, plans to raise Tk78 crore through an initial public offering (IPO), offering shares at Tk40 each, including a Tk30 premium over the Tk10 face value.

The company submitted an application with the Bangladesh Securities and Exchange Commission (BSEC) yesterday (26 October), appointing merchant bank Shanta Equity as the issue manager. It plans to issue 1.95 crore shares under the fixed-price method and list on the stock market’s main board.

Infographics: TBS

The proposed IPO would make Parkway Packaging one of the few companies to seek capital at a premium through the fixed-price method. Dorin Power Generations and Systems last used this method in 2016, raising Tk58 crore with a Tk19 premium per share.

According to the proposed IPO prospectus, Parkway Packaging plans to spend Tk65 crore on factory buildings and other infrastructure, Tk10.65 crore on machinery and equipment, and Tk2.35 crore on IPO-related expenses.

The move is part of DBL Group’s broader plan to bring more of its companies to the capital market to strengthen corporate governance, transparency and professional management. The group’s concern Matin Spinning Mills is already listed on the stock market.

Revenue rises 13.5%

Parkway Packaging manufactures cartons and other packaging products, primarily for the readymade garment industry. It began commercial production in 2008 and has a daily production capacity of around 35,000 to 75,000 cartons.

In FY26, the company’s revenue increased 13.49% year-on-year to Tk143 crore. It reported a net profit of Tk16.83 crore, earnings per share (EPS) of Tk3.74 and net asset value (NAV) per share of Tk34.04.

The company has an authorised capital of Tk150 crore and paid-up capital of Tk45 crore.

At the proposed issue price of Tk40 per share, the stock is valued at around 10.7 times its earnings per share, while the offer price is approximately 17.5% above its NAV per share.

Another DBL concern eyes listing

Thanbee Print World Ltd, another DBL Group concern serving the garment industry, is also preparing to enter the capital market. The company provides printing services and has a daily printing capacity of around 250,000 pieces.

DBL Group Vice Chairman M A Rahim previously told TBS that the group was preparing to list both Parkway Packaging and Thanbee Print World. However, the amount Thanbee intends to raise through its IPO had not been finalised.

DBL targets 4-5 more listings

Rahim earlier told TBS that the group planned to list another four to five companies over the next four years, provided the proposed IPOs of Parkway Packaging and Thanbee Print World are successful.

He said the objective was not limited to raising funds but also included improving corporate governance and ensuring professional management over the long term.

As the family expands, not all members will be directly involved in business operations. The group therefore wants to place its companies under professional management while allowing family members to remain involved as shareholders, he said.

DBL plans to bring several companies from its textile business to the market after the two proposed listings. However, it intends to wait longer before considering IPOs for its relatively new pharmaceutical business and ceramics operations.

Established in 1991, DBL Group is a diversified industrial conglomerate with interests in garments, textiles, accessories, packaging, ceramic tiles, pharmaceuticals, dredging, retail and technology.

The planned listings could expand the group’s presence in Bangladesh’s capital market while increasing public disclosure and regulatory oversight of its businesses.

Source: The Business Standard