IPO subscription of New Line Clothings begins Monday

The subscription of initial public offering (IPO) of New Line Clothings will begin tomorrow (Monday).

Through the IPO, the company will raise a fund worth Tk 300 million (30 crore) from the capital market under the fixed price method.

The public subscription will continue until February 28.

The securities regulator -- Bangladesh Securities and Exchange Commission (BSEC) -- approved the company's IPO proposal on November 28, 2018.

As per the securities regulator's approval, the company will offload 30 million ordinary shares at an offer price of Tk 10 each to raise the said amount under the fixed price method.

A market lot consists of 500 shares and an investor needs Tk 5,000 to apply for each lot of the company's IPO.

For non-resident Bangladeshi (NRB) and foreign applicants, the required amount (per lot) for subscription is US$ 60.10 or GBP 46.09 or EUR 53.05, according to the Dhaka Stock Exchange (DSE).

The company will use the IPO fund for acquisition of plant & machinery (39.23 per cent), extension of factory building (25.44 per cent), partial loan repayment (30 per cent) and meeting IPO expenses (5.31 per cent), according to the IPO prospectus.

As per the entity's audited financial statement for the year ended on June 30, 2017, the company's net asset value (NAV) per share and weighted average earnings per share (EPS) were Tk 20.51 (without revaluation) and Tk 1.85 respectively.

The company's pre-IPO paid-up capital is Tk 399 million and authorised capital is Tk 1.0 billion.

Banco Finance and Investment Ltd, Shandhani Life Finance Ltd and Southeast Bank Capital Services Ltd act as the issue managers for the IPO process.

At present, 53 textiles and garment companies are listed with the Dhaka Stock Exchange (DSE), accounting for about 4.0 per cent of the DSE market capitalisation.

The principal activities of the company are to manufacture various kinds of woven garments for both ladies and gents including trousers, shirts, children's wear, gents' wear, female wear, jackets, sportswear, denim garments and marketing.

Silco Pharmaceuticals: The initial public offering (IPO) subscription of Silco Pharmaceuticals is set to open on March 07, aiming to raise Tk 300 million from the capital market.

The subscription period ends on March 19.

The securities regulator approved the Silco Pharma's application to raise the fund on December 20, 2018.

Using the fixed-price method, Silco Pharma will float 30 million ordinary shares of Tk 10 each, according to the BSEC approval.

As of June 2017, five financial years' weighted average earnings-per share (EPS) of the company stood at Tk 1.46 and net asset value (NAV) per share at 25.41.

The company will utilise the IPO proceeds to construct factory building, purchase machinery and delivery van and bear the IPO expenses, according to the BSEC statement.

City Bank Capital Resources, EBL Investments and Citizen Securities & Investment are jointly working as issue managers of the company's IPO.

Silco Pharma, based in Sylhet, is one of the fastest growing pharmaceutical companies in Bangladesh since 1997 and is now on its way to becoming a high-performance global player, according to its official website.

The company started its journey with only 10 products. Now, it manufactures 108 products. Every year, Silco Pharma is introducing more than 10 to 20 new products.

Silco Pharmaceuticals will be the 32nd listed company under the 'Pharmaceutical & Chemicals' sector on the DSE.

This sector accounts for 15.50 per cent of the DSE's total market capitalisation.

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