The Financial Express

Ring Shine Textiles to hold IPO lottery draw October 1

The textile company to allocate 150m ordinary shares

| Updated: September 16, 2019 11:52:22

Ring Shine Textiles to hold IPO lottery draw October 1

Ring Shine Textiles is set to hold initial public offering (IPO) lottery draw on October 01 to allocate 150 million ordinary shares among the successful applicants, officials said.

The lottery draw of the textile company will be held at 10:00am at the Institute of Engineers, Bangladesh (IEB) in Dhaka.

After the lottery draw, IPO result will be published on the websites of Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and the company.

The Ring Shine Textiles 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 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 (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 after raising the funds through IPO would be Tk 4.35 billion.

AFC Capital Ltd and CAPM Advisory Ltd 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 on 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 by receiving order from 100 per cent export-oriented garment industries in Bangladesh.


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