Dhaka, Bangladesh (BBN) – The initial public offering (IPO) subscription of Shepherd Industries is set to begin from January 8 next year.
The aim of the IPO subscription is to raise BDT 200 million from the public, using the fixed price method, officials said.
The sweater yarn manufacturer’s IPO subscription will continue till 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.
According to IPO prospectus, the company will float 20 million ordinary shares of BDT 10 each through initial public offering.
A market lot is 500 shares and an investor needs BDT 5,000 to apply for per lot of the company’s IPO.
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 will manage the IPO.
At present, 45 textiles and garment companies are listed on Dhaka Stock Exchange (DSE), accounting for about 4.0 percent of the total market capitalisation of the premier bourse.
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.
Its daily production capacity is around 22.68 tonnes of cotton and cotton mix yarn and around 18.14 tonnes of acrylic and mix acrylic yarn, while its daily dyeing capacity is 60,000 pieces and washing capacity 50,000 pieces, according to the company’s website.
Walmart, Mark & Spencer, C&A, Tesco, Zara, H&M, Gap, Carrefour, Mango, Uniqlo, Primark, Lee Cooper, Aldi and s.Oliver are the international buyers of Shepherd Industries, which is an entity of Shepherd Group.