The initial public offering (IPO) of shares in Ring Shine Textiles Ltd. will open for subscription tomorrow (Sunday), as the company aims to raise a fund of Tk 1.50 billion from the stock market.
The share subscription by eligible investors will close on September 09.
The stock market regulator -- Bangladesh Securities and Exchange Commission (BSEC) -- approved the company's initial public offering (IPO) proposal on March 12.
As per the BSEC approval, the Ring Shine Textiles will float 150 million ordinary shares under the fixed price method at an offer price of Tk 10 each.
A market lot consists of 500 shares and an investor will have to pay Tk 5,000 for each lot while applying for the company's IPO shares.
For non-resident Bangladeshi (NRB) 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 to purchase and install machinery for the existing factory unit (64.27 per cent), repay bank loans (33.33 per cent) and meet the IPO expenses (2.40 per cent), within 18 months of receiving the IPO funds.
According to the company's 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 would be Tk 4.35 billion after raising the funds through IPO.
AFC Capital Ltd. and CAPM Advisory Ltd. are jointly working as the issue manager for the IPO process.
Ring Shine Textiles will be the 56th listed company under 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 on orders from 100 per cent export-oriented garment industries in Bangladesh.
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