BAT Bangladesh stock floor to go Monday

The floor price restriction for British American Tobacco (BAT) Bangladesh stock is set to be withdrawn on 4 March, as stated by the Bangladesh Securities and Exchange Commission (BSEC).

In a directive issued on 6 February, the market regulator said the floor restriction for BAT Bangladesh shares would be removed the day after the record date, scheduled for 3 March.

The floor price is the lowest price set by the securities regulator at which a stock can be traded. In January this year, the commission lifted the restriction for most stocks 18 months after its enforcement.

Currently, BAT Bangladesh shares have been stuck at the floor price of Tk518.70 each at the Dhaka bourse since September 2022.

BAT is currently recognised as the second-largest company in terms of market capitalisation, representing 6.55% of the Dhaka Stock Exchange’s total valuation. The tobacco company’s current total market cap stands at Tk28,000 crore.

On 8 February, BAT Bangladesh declared a 100% cash dividend to its shareholders for 2023, marking the lowest dividend in over a decade.

The multinational tobacco manufacturer reported a profit of Tk1,788 crore in 2023, a marginal increase from Tk1,787 crore in 2022.

Despite the similar profit, the company declared a dividend, representing only 30% of last year’s total profit. This marks a significant decrease from the 200% cash dividend payout in 2022.

While dividend data for BAT Bangladesh was not available before 2010, the company was known for announcing generous dividends over the years.

As per the disclosure, it reported earnings per share of Tk33.11 in 2023, a marginal increase from Tk33.10 in the previous year.

BAT Bangladesh is scheduled to convene its annual general meeting on 28 March.

The cigarette manufacturer operates factories in Dhaka and Savar, along with a green leaf threshing plant in Kushtia and a green leaf re-drying plant in Manikganj.

Over the past three years, the company has invested more than Tk1,200 crore in various phases to enhance its production capacity and meet the growing demand.

BAT Bangladesh has yet to publish detailed annual financial statements. However, based on available data, the company’s net turnover for the first nine months of 2023 grew by 10%, reaching Tk6,793 crore.

During the same period, domestic cigarette sales witnessed a 10% year-on-year increase, totalling Tk6,493 crore. Additionally, leaf exports surged by 16%, amounting to Tk30 crore during the January-September period of 2023.

BAT exports cigarettes to various countries, with notable markets like China and the Maldives. China, being a significant market for cigarettes, contributes substantially to the company’s global exports.

In addition to cigarettes, BAT also exports tobacco green leaf to a range of countries, including Belgium, Spain, the Netherlands, Turkey, the United Arab Emirates, Germany, the UK, the United States, and South Africa.

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Iram Hoque

Mohd. Iramul Hoque (Iram) completed his bachelor’s degree in Industrial Engineering in 2018 from Purdue University.

He joined Deloitte Consulting LLP as a Consulting Analyst based out of New York City having previously worked in similar roles at PricewaterhouseCoopers LLP & Landis+Gyr.

Iram left consulting and returned to Bangladesh to take up the family business. Realizing the opportunity in the capital market in Bangladesh, Iram worked relentlessly to found Columbia Shares & Securities Ltd in 2021.

Md Saiful Hoque

Md. Saiful Hoque received his bachelor’s degree in Civil Engineering from Columbia University in 1986 followed by a master’s degree from Texas A&M University in 1988. Upon completion of his Graduate Degree, he joined Gulf Interstate Engineering Company in Houston, USA serving as a Project Engineer.

He returned to Bangladesh in 1992 to join Columbia Enterprise Ltd., the family business of Shipping and Freight Forwarding services. In addition, he has built flourishing businesses manufacturing Garment’s Accessories and Fast-Moving Consumer Goods.