The Financial Express

IPO subscription of Ring Shine Textiles to open Aug 25

| Updated: August 16, 2019 11:24:17

Evaly and Fianancial Express Evaly and Fianancial Express
IPO subscription of Ring Shine Textiles to open Aug 25

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

The Textile company’s initial public offering (IPO) subscription will br continued until September 9, officials said.

The stock narket regulator -- Bangladesh Securities and Exchange Commission (BSEC) approved the company’s IPO proposal on March 12 this year 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.

It would be the highest amount raised by a textile company through IPO in fixed price method from the country’s capital market.

The company will utilize 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, authorised capital of the company 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 from the market would be Tk 4.35 billion, which is the second highest in the sector.

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 of Bangladesh.

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