Dhaka, Bangladesh (BBN) – Initial public offering (IPO) subscription of Shepherd Industries began on Sunday, which will raise BDT 200 million from the public using the fixed price method.
The sweater yarn manufacturer’s public subscription will be continued until January 16 for resident and non-resident Bangladeshis.
The investors can apply for the company’s IPO only through their respective brokerage houses and merchant banks under the mandatory IPO application system.
The Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of Shepherd Industries on November 15 for raising BDT 200 million from the public.
According to IPO prospectus, the company will float 20 million ordinary shares of Tk 10 each through IPO.
A market lot is 500 shares and an investor needs BDT 5,000 to apply for per lot of the company’s IPO.
The required amount (per lot) of foreign currency for NRBs and foreign applicants for IPO of the company are US$ 63.78 or GBP 50.86 or EUR 60.71, according to company’s IPO prospectus.
The company will use the IPO proceeds for setting up a washing plant, purchasing machinery for the washing plant, expanding the effluent treatment plant, repaying bank loans and IPO expenses.
The company’s last five years’ weighted average earnings per share (EPS) stood at BDT 1.44 and net asset value (NAV) per share at BDT 18.70 in June, 2016.
Alpha Capital Management is acting as issue manager of the company’s IPO.
At present, 45 textiles and garment companies are listed on Dhaka Stock Exchange (DSE), accounting for about 4.0 percent of the premier bourse’s total market capitalisation.
Located at Bhaluka in Mymensingh, Shepherd Industries is a 100 percent Taiwan invested sweater yarn manufacturer established in 2000.
The company supplies a wide range of sweater yarns and provides garment dyeing and washing services to export-oriented sweater factories in Bangladesh.