Dhaka, Bangladesh (BBN) - The initial public offering (IPO) subscription of Nurani Dyeing & Sweater began on Sunday which will raise BDT 430 million from the public using the fixed price method.
The sweater manufacturer’s IPO subscription will be continued till April 10 for resident and non-resident Bangladeshis.
The securities’ regulator – Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of the Nurani Dyeing to raise BDT 430 million from the public using the fixed price method on February 9.
As per the regulatory approval, Nurani Dyeing will float 43 million ordinary shares at a face value of BDT 10 each without premium.
A market lot is 500 shares and an investor needs BDT 5,000 to apply for per lot of the company’s IPO.
According to company’s IPO prospectus, the required amount (per lot) of foreign currency for NRBs and foreign applicants are US$ 63.22 or GBP 51.59 or EUR 59.92.
The fund, which will be collected through, will be used for business expansion (purchase of machineries, equipments, steel structure and civil construction), re-pay the bank loans and IPO expenses.
The company’s weighted average earnings per share (EPS) for the last five years stood at BDT 1.79 and net asset value (NAV) per share without revaluation was BDT 14.37 for the year ended on June 30, 2016.
Imperial Capital Limited, CAPM Advisory Limited and EBL Investments Limited are jointly working as issue manager of the company’s IPO.
At present, 47 textiles and garment companies are listed on premier bourse accounting for about 4.0 percent of the premier bourse’s total market capitalisation.
Located at Fatehpur in Feni, Nurani Dyeing imports yarn from China, Indonesia, and India.
Then it produces Sweater after dyeing the imported yarn.
In addition, the company also sales imported yarn after dying to the export oriented bonded factory.
BBN/SK/AD