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The initial public offering (IPO) of Esquire Knit Composite opens tomorrow (January 06) for public subscription, aiming to raise a capital of over Tk 562 million.
The subscription period ends on January 20, 2019.
The company is going to raise a total capital of Tk 1.50 billion through issuing 34.89 million ordinary shares under the book-building method.
Of the total shares, 60 per cent or 20.83 million shares (worth Tk 937 million) are reserved for eligible investors at a cut-off price. The remaining shares are offered for public subscription.
The cut-off price of Esquire Knit share was fixed at Tk 45 each on July 14 last year by the institutional investors through bidding.
The remaining 40 per cent or 14.06 million shares will be available for the individual investors, including affected small investors and non-resident Bangladeshis.
The general investors will get IPO shares at 10 per cent discount on the cut-off price, meaning they will get each share of the company at Tk 40.
The proceeds will be used to buy machinery, construct buildings and meet the IPO expenses.
On January 23 last year, the securities regulator -- Bangladesh Securities and Exchange Commission (BSEC) -- allowed the Esquire Knit to conduct bidding for its shares to set the cut-off price of its shares.
The bidding took place from July 9 to 12.
A total of 508 registered eligible institutional investors took part in the bidding and the bids ranged from Tk 15 to Tk 53.
Finally, the company's cut-off price was fixed at Tk 45 each as per the book-building rules.
The export-oriented knit garments company held a road show in April 2017.
Prime Finance Capital Management is the issue manager of the Esquire Knit IPO.
Currently, the company's paid-up capital is Tk 1.0 billion and authorised capital is Tk 2.0 billion.
Esquire Knit's revenue stood at Tk 4.45 billion for the year ending on June 30, 2017. Its net profit was Tk 312 million.
The company's weighted earnings per share (EPS) was Tk 2.52 and the net asset value (NAV) per share (with revaluation reserve) Tk 45.83 at the end of June 30, 2017.
Located at Sonargaon in Narayanganj, Esquire Knit has been emerging as a conglomerate with knitting, fabric dyeing and finishing facilities under one roof since its commercial launch in 2001.
At present, 53 textiles and garment companies are listed with the Dhaka Stock Exchange (DSE), accounting for about 4.0 per cent of total market capitalisation of the DSE.