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New Line Clothings IPO subscription begins Feb 18

Company to raise Tk 300m from capital market


FE Report | Published: February 09, 2019 10:53:58 | Updated: February 11, 2019 10:35:54


The subscription of initial public offering (IPO) of New Line Clothings is set to begin on February 18.

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

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).

As per the entity's audited financial statement for the year ended on June 30, 2017, the company's net asset value per share and weighted average earnings per share 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 Limited and Southeast Bank Capital Services Limited 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.

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