IPO subscription of Zaheen Spinning begins Sunday

FE Report
The initial public offering (IPO) subscription of Zaheen Spinning Limited (ZSL) will begin from Sunday (December 28) to raise a fund worth Tk 120 million from the public, officials said.
The IPO subscription will remain open till January 5, 2015 for resident Bangladeshi and it will continue till January 13, 2015 for non-resident Bangladeshi (NRB).
In addition to the existing IPO application process, Bangladeshi nationals can also apply through their stockbroker/merchant bankers under the pilot project. However, non-resident Bangladeshi and foreign investors have to apply through the existing method.
The securities regulator - Bangladesh Securities & Exchange Commission (BSEC) approved the IPO proposal of Zaheen Spinning on October 29, this year.
Using the fixed price method, the yarn manufacturer set to float 12 million ordinary shares of Tk 10 each to raise the said amount. A market lot is 500 shares and single IPO lot is Tk 5,000.
The fund raised through the public offerings will be used to set up a new plant, purchase machinery and to meet the expenses of IPO proceedings, according to the company's IPO prospectus.
MTB Capital Limited is acting as issue manager of the IPO of Zaheen Spinning. The company's earnings per share (EPS) stood at Tk 1.01 and net asset value (NAV) at Tk 12.59 per share on June, 2014.
At present 37 textiles and garment companies are listed on the DSE, accounting for around 5.0 per cent of the total market capitalization.
Zaheen Spinning was established in 2008 at Ghowjara, Araihazar, Narayangonj industrial city in Narayangonj.
The Zaheen Spinning is committed to produce fine quality cotton yarn from different counts, 100 per cent, cotton yarn normal or high bulk. The yarn is used in different end markets such as knitwear, fabrics, socks and weaving, according to company's website.
    babulfexpress@gmail.com