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New Line Clothings IPO lottery

Mar 24 IPO oversubscribed by 28 times


FE Report | Published: March 15, 2019 10:31:58 | Updated: March 18, 2019 10:31:50


The New Line Clothings will hold its IPO lottery draw on March 24 to allocate 30 million ordinary shares among successful applicants.

The lottery draw will be held at the Institution of Engineers, Bangladesh (IEB) in Dhaka at 10:00am and its results will be published on the websites of Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and the company, officials said.

The company received applications for the initial public offering (IPO) from February 18 and March 03 to raise a fund worth Tk 300 million (30 crore) from the capital market under the fixed price method.

However, the IPO was oversubscribed by nearly 28 times as the company received more than Tk 8.32 billion against IPO issue of Tk 300 million, officials said.

The securities regulator-Bangladesh Securities and Exchange Commission (BSEC) -- approved the company's IPO proposal on November 28, 2018.

The company offloaded 30 million ordinary shares at an offer price of Tk 10 each.

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. acted 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.

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