BSEC approves qualified offer of Craftsman Footwear
FE REPORT | Thursday, 15 February 2024
The stock market regulator has allowed Craftsman Footwear and Accessories, a SME company, to raise Tk 50 million through a qualified investors offer (QIO).
The export-oriented shoemaker will issue 5 million ordinary shares at a face value of Tk 10 each under the fixed price method, as decided at a meeting at the office of the Bangladesh Securities and Exchange Commission (BSEC), presided over by BSEC Chairman Prof. Shibli Rubayat Ul Islam.
Only qualified investors are allowed to submit applications for the company's shares. Green Delta Capital Ltd is acting as issue manager.
The company will utilise the QIO proceeds for business expansion and repayment of a portion of bank loans.
Sadat Hossain Salim, managing director of Craftsman Footwear, recently unveiled his plan to enter the stock market.
He said interest against bank loans had shot up and might reach 15 per cent in near future, which would hamper business growth.
"That's why we want to arrange funds from the primary market for business expansion."
The status of the company will also be elevated after listing, said Mr Salim, adding that foreign buyers generally prefer publicly-traded companies for sourcing products.
According to the company's financial statements for FY23, its earnings per share stood at Tk 2.35, net asset value per share at Tk 16.72.
The company's overall sales more than doubled year-on-year to Tk 733 million in FY23, backed by higher exports. Its exports soared 237 per cent to Tk 711 million while domestic sales dropped 19 per cent to Tk 23.14 million, indicating that the company is more focused on exports.
It intends to construct new production buildings and separate warehouses.
The company exports products mainly to Italy, Japan, the USA, Germany, Canada, Hungry, Austria, Poland, and Spain while major buyers are Hush Puppies, Bata, Tata Italia, Parrotto, Unit, Fine Boys, On Spirit Primadonna.
It has two production units: one for local sales, while the other for export items.
Craftsman Footwear has set a target to export shoes worth $100 million by the next three years.