The Financial Express

Queen South Textile allocates 15m shares thru IPO lottery

| Updated: February 04, 2018 11:48:30

Evaly and Fianancial Express Evaly and Fianancial Express
Queen South Textile allocates 15m shares thru IPO lottery

The Queen South Textile Mills Limited allocated 15 million ordinary shares among successful applicants through IPO (initial public offering) lottery draw on Thursday.

The lottery draw was held at the Institution of Engineers, Bangladesh (IEB) in the city and the results were published on the websites of Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and the company.

Wong Kwok Chuen, chairman of Queen South Textile, inaugurated the lottery programme. Issue manager and representatives of DSE, CSE and Central Depository Bangladesh Limited attended the event.

Queen South Textile Mills, which received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on November 14 last year, raised a capital of Tk 150 million by floating 15 million ordinary shares of Tk 10 each under fixed-price method.

The IPO subscription was open to resident and non-resident Bangladeshis during the period from January 7 to January 15, 2018.

The IPO was oversubscribed more than 37 times, as the company received about Tk 5.55 billion against the public offering of shares worth Tk 150 million.

The proceeds from the IPO will be utilised for procurement and installation of automatic warehouse storage machine, acquisition and installation of machineries for modernisation of existing factory unit, partial repayment of long-term bank loan and to meet the IPO expenses.

As per the entity's audited financial statement for the year ending on December 31, 2016, the company's net asset value (NAV) per share and weighted average earnings per share (EPS) were Tk 16.20 and Tk 1.42 respectively.

The company's pre-IPO paid-up capital is Tk 851 million and authorised capital is Tk 2.0 billion, according to the IPO prospectus.

Alpha Capital Management is the issue manager of the company's IPO.

Queen South Textile Mills is a 100 per cent export-oriented yarn dyeing industry located at Dhaka Export Processing Zone. Established in 2003, the company started its operation in mid-2005.

Currently, 49 companies are listed with the Dhaka Stock Exchange (DSE) under textile sector, which accounts for around 3.50 per cent of the DSE's total market capitalisation.

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