RAK Ceramics (www.rakceramics.com; ADX: RAKCEC), the world's largest ceramics manufacturer, has announced that listing process of its Bangladesh subsidiary is now successfully complete with the commencement of share trading in Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). The company received initial public offering (IPO) collection of more than USD 258.6 million (Bangladeshi Taka {BDT} 18.1 billion) in an initial public issue process in Bangladesh, setting a record for the highest-ever IPO collection in the country. RAK Ceramics launched the IPO to make the company debt-free and fund future projects in Bangladesh, where the company supplies up to 75 per cent of the domestic demand for sanitary ware and 25 per cent of demand for ceramic tiles.
RAK Ceramics, which has been operating a joint venture in Bangladesh since early 2000, has also become the first-ever company in Bangladesh to launch its IPO as per DSE recommended book building process, a modern pricing mechanism for IPO introduced in March last year. The public portion of IPO was around 15 times oversubscribed, setting another record as the highest oversubscription in Bangladesh for an issue size greater than USD 5 million. RAK Ceramics also set a new standard in the country for the highest IPO application received with 1.59 million applications. 19.35% shares were placed in the IPO and RAK Ceramics UAE retains 72.59% of the post-IPO share holding of the company in Bangladesh.
Dr. Khater Massaad, CEO of RAK Ceramics, said: "The unprecedented investor response has been a significant vote of confidence in the entire RAK Ceramics organisation's ability to maintain a profitable, sustainable and stable company. We will continue to move forward with our growth strategy in Bangladesh, addressing the increasing domestic demand while gradually strengthening our exports to neighbouring countries. Our goal is to help establish Bangladesh as a leading supplier of world-class sanitary ware and ceramic tiles which should benefit Bangladesh's growing economy."
RAK Ceramics offered a total of 34.51 million equity shares with a face value of BDT 10 each, which were priced at BDT 48 per share after the price discovery in the book building process. The share trading began on 13 June, 2010 on DSE and CSE and during the initial day the share price crossed above BDT 200 per share amounting to a record market capitalisation of over USD 650 million. IDLC Finance was the lead issue manager of the RAK Ceramics IPO, while BRAC-EPL Investments Ltd was the joint issue manager.
Taking advantage of the company's technology and country's manpower availability and infrastructure, RAK Ceramics has been operating a joint venture in Bangladesh for the last 10 years. The company's turnover reached four fold in the last five years and a compounded annual growth of 33.26 per cent in eight years. RAK Ceramics' commercial operations have helped create hundreds of direct skilled and semi-skilled jobs as well as thousands of indirect jobs in Bangladesh.
RAK Ceramics is a USD 1 billion global conglomerate in the ceramic industry that exports its products to over 150 countries, targeting architects, project developers and retail customers. RAK Ceramics has also been recently conferred the Superbrand 2010 Award and continues to be a global pioneer in the world of ceramics.
