Craftsman Footwear QIO subscription begins Sunday

The shares subscription of Craftsman Footwear and Accessories, another SME company, through registered qualified investors offer (QIO) will open on Sunday (April 21), aiming to raise Tk 50 million from the SME platform.

The export-oriented shoe maker’s share subscription under the fixed price method through the electronic subscription system (ESS) will continue until 4:30pm on April 25, according to its prospectus.

The qualified investors, who maintained a minimum investment of Tk 3 million at market price in the secondary market in matured securities, are allowed to submit applications for shares.

The stock market regulator, on February 14, allowed Craftsman Footwear to raise the said amount from the stock market through qualified investors' offers.

As per the regulatory approval, the shoe maker will issue 5 million ordinary shares at a face value of Tk 10 each under the fixed price method.

The company will utilise the QIO proceeds for BMRE (Balancing, Modernisation, Rehabilitation, and Expansion) of Tk 20 million, repayment of bank loans of Tk 10 million, working capital management Tk 15.48 million and the rest for QIO related expenses.

“The funds raised through the QIO will be allocated towards essential aspects such as rebalancing, modernisation, expansion, and replacement, as well as repayment of bank loans and efficient working capital management,” said Sadat Hossain Salim, founder managing director of Craftsman Footwear.

Mr Salim said this strategic investment will enable the introduction of high-quality new products, thereby attracting more foreign buyers.

“Ultimately, this initiative will not only bolster remittance inflow but also instill confidence among our investors,” he said.

According to the company’s financial statements for FY23, its earnings per share stood at Tk 2.35, the net asset value per share at Tk 16.72.

The company’s overall sales more than doubled year-on-year to Tk 733 million in FY23 backed by higher exports. Its exports soared 237 per cent to Tk 711 million while domestic sales dropped 19 per cent to Tk 23.14 million, indicating the company is more focused on exports.

The company exports products mainly to Italy, Japan, USA, Germany, Canada, Hungry, Austria, Poland and Spain while major buyers are Hush Puppies, Bata, Tata Italia, Parrotto, Unit, Fine Boys, On Spirit Primadonna.

The company has two production units: Unit-1 produces for local sales while unit-2 manufacturers for exports which started operation in April 2021.

Craftsman started its operation in 2017 as a shoe manufacturer for the export market with 35 employees at a small factory unit in Joina Bazar of Sreepur Upazila in Gazipur.

Now, the company has a state-of-the-art manufacturing facility with a 100,000-square-foot factory area with more than 750 employees.

Green Delta Capital is acting as the issue manager while Prime Finance Capital Management and BLI Capital are working as underwriters.

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