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The share subscription of Craftsman Footwear and Accessories, an SME company, will open on April 21, aiming to raise Tk 50 million through a qualified investors offer (QIO).
Qualified investors, who have maintained a minimum investment of Tk 3 million at the market price of matured securities in the secondary market, are allowed to submit applications for shares.
The Central Depository Bangladesh Limited (CDBL) shall send a report to the Dhaka Stock Exchange regarding the holdings of QIs in the listed securities. The exchange shall ensure compliance in this regard.
The stock market regulator gave permission to Craftsman Footwear in February to raise the said amount under the fixed price method.
As per the regulatory approval, the shoemaker will issue 5 million ordinary shares at a face value of Tk 10 each.
The company will utilise Tk 20 million of the QIO proceeds for BMRE (Balancing, Modernization, Rehabilitation, and Expansion) and Tk 15.48 million for working capital management. The rest will go on QIO expanses.
Sadat Hossain Salim, managing director of Craftsman Footwear, recently said they were going to join the stock market for business expansion and partial repayment of bank loans.
The banks' lending rate has increased and it might reach 15 per cent in near future hampering the business growth, said Mr Salim. "That's why we want to arrange funds [through listing in the stock market] for business expansion."
The image of the company will also improve after listing in the stock market as buyers generally preferred publicly-traded companies for sourcing their products, Mr Salim added.
According to the company's financial statements for FY23, its earnings per share stood at Tk 2.35 and the net asset value per share at Tk 16.72.
The company's overall sales more than doubled year-on-year to Tk 733 million in FY23, backed by higher exports. Its exports soared 237 per cent to Tk 711 million while domestic sales dropped 19 per cent to Tk 23.14 million, which indicates the company's focus on exports.
Craftsman Footwear has set a target to export shoes worth more than $100 million by the next three years. It intends to construct new production buildings and separate warehouses.
The company exports products mainly to Italy, Japan, USA, Germany, Canada, Hungry, Austria, Poland and Spain while major buyers are Hush Puppies, Bata, Tata Italia, Parrotto, Unit, Fine Boys, On Spirit Primadonna.
Craftsman started its operation in 2017 as a shoe manufacturer for the export market with 35 employees at a small factory unit in Joina Bazar of Sreepur Upazila in Gazipur.
Now, the company has a state-of-the-art manufacturing facility with a 100,000-square-foot factory area with more than 750 employees.
Green Delta Capital is acting as the issue manager while Prime Finance Capital Management and BLI Capital are working as underwriters.