Public subscription of textiles, automobile groups opened

The public subscription of Chittagong-based C & A Textiles began Sunday while public subscription of IFAD Autos will begin on November 23, officials said.
C & A Textiles: The initial public offering (IPO) subscription of the textile company will remain open till November 13 for resident Bangladeshis while November 22 for non-resident Bangladeshis (NRBs).
In addition to the existing IPO application process, Bangladeshi nationals can apply through their stockbrokers/merchant bankers. However, non-resident Bangladeshis and foreign investors have to apply through the existing method.
Under the fixed price method, the Chittagong textiles producer is set to float 45 million ordinary shares at an offer price of Tk 10 to raise fund worth Tk 450 million from the public with a market lot of 500 shares.
In accordance with the audited financial statement for the year ended on December 31, 2013, the company's earnings per share (EPS) and Net Asset Value (NAV) are Tk 1.78 and Tk 18.38 respectively.
Proceeds from IPO will be used for repayment of bank loan, which alone accounts for 68.61 per cent. The residual portion will go for construction of building & acquisition of machiner and IPO expenses 4.02 per cent, according to the company's IPO prospectus.
AFC Capital and Imperial Capital are working as issue managers of the C & A Textiles' IPO.
Bangladesh Securities & Exchange Commission (BSEC), the securities regulator, approved the IPO proposal of C & A Textiles on September 23 this year.
The C & A Textiles began commercial operation on February 7, 2003. The knit composite textiles group carries out business of Knitting, Dyeing, Printing and Manufacturing of various types of apparel, according to the company's website.
IFAD Autos: The public subscription of IFAD Autos Ltd will begin from November 23 and remain open till November 27 for resident Bangladeshis and it will continue till December 6 for non-resident Bangladeshis (NRBs).
The securities regulator gave the green light to IFAD Autos to raise Tk 637.5 million from public on September 18.
The automobile dealer plans to float 21.25 million ordinary shares of Tk 10 each at an offer price of Tk 30, including Tk 20 as premium.
Banco Finance and Investment and Alpha Capital Management will manage the initial public offering, the proceeds of which would be used for business expansion and bank loan repayment.
The company's earnings per share as of June stood at Tk 5.16 and revalued net asset value per share Tk 44.12.
The proceeds from the IPO will be used for capital expenditure for assembling and body building units, bank loan repayment and IPO expenses.
The principal activity of and operation of IFAD Autos Ltd is importing, marketing, and body building of different models of Ashok Leyland's vehicles  in Bangladesh through its own marketing staffs, dealers and selling agents in different districts of the country, according to the company's prospectus.

babulfexpress@gmail.com