The Financial Express

Ring Shine Textile's subscription opens on Aug 25 to raise Tk 1.50 billion

FE Report | Published: August 01, 2019 11:05:12 | Updated: August 01, 2019 19:51:39

Ring Shine Textile's subscription opens on Aug 25 to raise Tk 1.50b

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 company's initial public offering (IPO) subscription will continue until September 9, officials said.

The 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.

The company will utilise the IPO proceeds for purchasing and installation of machinery for the existing factory unit, partial repayment of bank loans of the company and to meet the IPO expenses, 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 weighted average earnings per share (EPS) stood at Tk 1.86.

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 Limited and CAPM Advisory Limited are jointly working 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 Dhaka Stock Exchange.

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, and dyed yarn to the ready-made garment (RMG) industry in Bangladesh.


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