Ring Shine Textiles holds IPO lottery draw

Ring Shine Textiles to allocate 150 million ordinary shares among successful applicants as the company's IPO lottery draw was held on Tuesday.

The lottery draw was held at 10:30am at the Auditorium of Institution of Engineers (IEB) in Dhaka.

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

The Ring Shine 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 was oversubscribed by 6.74 times as the company received Tk 10.11 billion against IPO offer of Tk 1.50 billion, according to Chittagong Stock Exchange.

The Bangladesh Securities and Exchange Commission (BSEC) approved the company's IPO proposal on March 12 this year.

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 jointly worked 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 in the prime bourse.

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