IPO subscription of KDS begins

The initial public offering (IPO) subscription of KDS Accessories, a sister concern of KDS Group, started Sunday while public subscription of Simtex Industries will take place from August 24, officials said.
IPO subscription of KDS Accessories, which set to raise Tk 240 million from the public, 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 TREC (trading right entitlement certificate) holders' and merchant banks under the mandatory IPO application system.
The securities regulator has made the submission of application for IPO through merchant banks and TREC holders' mandatory recently instead of applying through banks.
Using the fixed price method, the trims and packaging manufacturer will float 12 million ordinary shares of Tk 10 each at an offer price of Tk 20, with Tk 10 as premium.
The market lot is 250 shares and an investor needs Tk 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 per cent shares (28,800 lots) for general public, 20 per cent (9,600 lots) for affected small investors, 10 per cent (4,800 lots) for NRBs and 10 per cent (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 Tk 2.29 and Tk 19.63 respectively.
The company will use 62.50 per cent funds from the IPO for business expansion, 29.17 per cent for repayment of bank loan and 8.33 per cent  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 works in the most comprehensive range of apparel trims and packaging products and services.
The company is engaged in production of different types of textile accessories like cartons, labels, tags, printings, narrow fabrics, heat transfer printings and button, according to the company's prospectus.
On the other hand, IPO subscription of Simtex Industries will begin from August 24 to raise Tk 600 million from the public.
The public subscription will remain open until September 1 for resident and non-resident Bangladeshis (NRBs).
The securities regulator approved the IPO proposal of the company on June 9, this year.
As per the securities regulator's approval, Simtex Industries will offload 30 million ordinary shares at an offer price of Tk 20, including a premium of Tk 10 for each ten taka share.
The company will use the funds from the initial public offering for capital investments, repayment of bank loans, business expansion and bear the cost of IPO proceedings, according to the IPO prospectus.
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