Dhaka, Bangladesh (BBN)– The initial public offering (IPO) subscription of two textile companies — Shasha Denims Limited (SDL) and Zaheen Spinning Ltd (ZSL) will take place this month, officials said.
In addition to the existing IPO application process, Bangladeshi nationals can also apply through their stockbroker/merchant bankers. However, non-resident Bangladeshis and foreign investors have to apply through the existing method.
Shasha Denims: The public subscription of Shasha Denims, a sister concern of Shasha Group will begin on December 14 to raise a fund worth BDT 1.75 billion from the public.
The IPO subscription of the denim producer will remain open till December 21 for the resident Bangladeshi while it will continue till December 30 for the non-resident Bangladeshi.
The securities regulator – Bangladesh Securities & Exchange Commission (BSEC) approved the IPO proposal of Shasha Denims on October 10 this year.
As per the approval, the denim producer will offload 50 million ordinary shares at an offer price of BDT 35, including a premium of BDT 25 for each BDT 10 share and raise the said amount. A market lot is 200 shares.
The company will used the fund to expand business, repay bank loans and bear the expenses of the IPO proceedings.
According to the audited financial reports for the year that ended on December 31, 2013, the company’s earnings per share stand at BDT 3.73, while its net asset value is BDT 52.95.
AFC Capital and Imperial Capital will jointly manage the issue for Shasha Denims’s IPO.
Zaheen Spinning: Public subscription of Zaheen Spinning will begin on December 28 and remain open till January 4, 2015 for resident Bangladeshi while it will continue till January 13, 2015 for the non-resident Bangladeshi.
The securities regulator approved the IPO proposal of Zaheen Spinning to raise BDT 120 million from the public on October 30 this year.
The yarn manufacturer will float 12 million ordinary shares of BDT 10 each to raise funds for plant and machinery purchase. A market lost is 500 shares.
According to the financial statement for the year ended on June 30, 2014, the company’s earnings per share (EPS) and net asset value (NAV) are BDT 1.01 and BDT 12.59 respectively.
MTB Capital will manage the initial public offering of Zaheen Spinning.
BBN/SSR/AD-03Dec14-12:30 pm (BST)
