The Financial Express
Swasti Lankabangla Swasti Lankabangla

Ring Shine Textiles makes debut Thursday

| Updated: December 12, 2019 16:41:28

Ring Shine Textiles makes debut Thursday

Trading of the shares of Ring Shine Textiles Ltd will commence on Dhaka Stock Exchange and Chittagong Stock Exchange from tomorrow (Thursday) under 'N' category, officials said.

The Ring Shine Textiles is the first company which will make debut after the securities regulator imposed a circuit breaker system.

The securities regulator has recently imposed a circuit breaker system to the newly listed companies' on their share prices from their debut trading day to prevent unusual price volatility.

The textile company raised a fund worth Tk 1.50 billion from the capital market by floating 150 million ordinary shares at a face value of Tk 10 each using the fixed price method.

The subscription for shares of the company by the eligible investors through electronic subscription system was held between August 25 and September 09.

The company's IPO oversubscribed by 6.74 times as the company received total Tk 10.11 billion against IPO offer of Tk 1.50 billion, according to data from the Chittagong Stock Exchange.

The stockmarket regulator -- Bangladesh Securities and Exchange Commission (BSEC)-- approved the company's IPO proposal on March 12 to raise the said amount through IPO.

The company will utilise the IPO proceeds for purchasing and installation of machinery for the existing factory unit (64.27 per cent), repayment of bank loans (33.33 per cent) and to meet the IPO expenses (2.40 per cent), 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 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 after raising the funds through IPO would be Tk 4.35 billion.

AFC Capital Ltd and CAPM Advisory Ltd jointly worked as the issue manager for the IPO process.

Ring Shine Textiles will be the 56th listed company in 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.


Share if you like