Dhaka, Bangladesh (BBN)-The initial public offering (IPO)
subscription of KDS Accessories Ltd (KAL) will begin on Sunday, (August 9) to raise a fund worth Tk 240 million from the public, officials said.
The public subscription will remain open until August 20 for resident and non-resident Bangladeshis (NRBs).
The investors can apply for KDS Accessories IPO only through their respective brokerage houses and merchant banks under the mandatory IPO application system.
The securities regulator has made the submission of application for IPO through merchant banks and brokerage houses mandatory recently instead of applying through banks.
Using the fixed price method, the trims and packaging manufacturer is set to float 12 million ordinary shares of BDT 10 each at an offer price of BDT 20, with BDT 10 as premium.
The market lot is 250 shares and an investor needs BDT 5,000 to apply for one lot.
The required amount (per lot) of Foreign Currency for NRBs and Foreign applicants for IPO of KDS Accessories are USD 64.60 or GBP 41.83 or EUR 59.03, according to company’s IPO prospectus.
The company has offered 60 percent shares (28,800 lots) for general public, 20 percent (9,600 lots) for affected small investors, 10 per cent (4,800 lots) for NRBs and 10 percent (4,800 lots) for mutual funds.
As per the audited financial statement for the year that ended on December 31, 2013, the company’s weighted average earnings per share (EPS) and net asset value (NAV) per share are BDT 2.29 and BDT 19.63 respectively.
The company will use the funds from the IPO for business expansion, bank loan repayment and to meet the expenses of IPO proceedings.
Alliance Financial Services Ltd. is acting as issue manager for the IPO.
The securities regulator - Bangladesh Securities and Exchange Commission (BSEC) - approved the IPO proposal of the company on May 27 this year.
The KDS Accessories, a sister concern of business conglomerate KDS Group, works in the most comprehensive range of apparel trims and packaging products and services.
The company’s products and services are packaging, thread, label and tags, hangers, poly bags, printing and heat transfer. It also offers supply chain solutions and trims solutions, according to the company’s website information.
BBN/BB/SK