Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
The subscription period for the initial public offering (IPO) of New Line Clothings Limited has been extended up to March 03.
Earlier, the subscription deadline was February 28 (Thursday).
The Dhaka Stock Exchange (DSE) extended the deadline as trading and official activities remained closed on the day due to Dhaka North City Corporation elections, said a DSE official.
The IPO of the company opened on February 18.
The subscription period will now continue till 5:30pm of March 03, 2019 (round the clock) instead of 5:30pm of February 28, 2019 (round the clock), according to a disclosure posted on the DSE website on Wednesday.
The garment company has floated the IPO to raise a fund worth Tk 300 million (30 crore) from the capital market under fixed price method.
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.
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 DSE, accounting for about 4.0 per cent of the DSE market capitalisation.
Established in 2000, the principal activities of the company is to manufacture various kinds of woven garments for both ladies and gents, including trousers, shirts, children wear, gents wear, female wear, jackets, sportswear, denim garments and marketing.