VFS Thread publishes IPO lottery results

VFS Thread Dyeing Limited will allocate 22 million ordinary shares among the successful applicants as the company's IPO lottery draw was held in the capital on Thursday.

The IPO lottery result has been published on the websites of Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), issue managers and the company.

VFS Thread Dyeing raised a fund worth Tk 220 million by issuing 22 million ordinary shares under fixed price method.

The public subscription of the company was held between June 24 and July 02 through electronic subscription system.

The company's initial public offering (IPO) was oversubscribed by more than 45 times as the company received about Tk 10 billion against public issue of Tk 220 million.

The securities regulator, Bangladesh Securities and Exchange Commission (BSEC), approved the IPO proposal on April 03.

The proceeds will be utilised to purchase plant and machinery, repay bank loans and bear the IPO expenses.

According to financial statement for the year ended on June 30, 2017, the company's net asset value (NAV) per share stood at Tk 19.90 (without revaluation) and the weighted average earnings per share (EPS) was Tk 2.02.

Citizen Securities & Investment and First Security Islami Capital & Investment are jointly working as the issue managers of the company's IPO.

Incorporated in 2010, the principal activities of the company are to carry on the business of dyeing and finishing of sewing thread of different types for 100 per cent export-oriented readymade garments industries in Bangladesh.

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