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Ring Shine Textile's subscription opens on August 25

The company to raise Tk 1.50b through IPO


FE Report | Published: August 15, 2019 11:33:19 | Updated: August 18, 2019 11:34:21


The public subscription of Ring Shine Textiles Ltd is set to begin on August 25, aiming to raise a capital worth Tk 1.50 billion from the stock market.

The textile company's initial public offering (IPO) subscription will remain open until September 9, officials said.

The stockmarket regulator -- Bangladesh Securities and Exchange Commission (BSEC) approved the company's IPO proposal on March 12 to raise the said amount through IPO.

As per the BSEC approval - under the fixed price method - Ring Shine Textiles will float 150 million ordinary shares at an offer price of Tk 10 each to raise Tk 1.50 billion.

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

For non-resident Bangladeshis (NRBs) and foreign applicants, the required amount (per lot) for subscription is US$ 59.71 or GBP 49.26 or EUR 53.81, according to the Dhaka Stock Exchange (DSE).

The company will utilise the IPO proceeds for purchasing and installation of machinery for the existing factory unit (64.27 per cent), repayment of bank loans (33.33 per cent) and to meet the IPO expenses (2.40 per cent), within 18 months of receiving the IPO funds.

According to the financial statement ended on June 30, 2018, the company's net asset value (NAV) per share (without revaluation) was Tk 23.17 and the earnings per share (EPS) stood at Tk 1.99.

Currently, the company's authorised capital is Tk 4.40 billion and paid-up capital is Tk 2.85 billion. The paid-up capital of the company after raising the funds through IPO would be Tk 4.35 billion.

AFC Capital Ltd and CAPM Advisory Ltd jointly worked as the issue manager for the IPO process.

After completing all the procedures, Ring Shine Textiles will be the 56th listed company in the 'Textile' sector in the prime bourse.

Established in 1998, Ring Shine Textiles is one of the largest fully integrated textile companies in Bangladesh with a dominant presence in the cotton and polyester segments, according to its website information.

The major activities of the company is manufacturing and marketing of gray and finished fleece fabrics of various qualities. The company dyes different types of yarn and fleece fabrics by receiving order from 100 per cent export-oriented garment industries in Bangladesh.

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