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Esquire Knit makes debut in first week of April

Runner shares credited into BO accounts Mar 25

FE Report | March 31, 2019 00:00:00

Esquire Knit Composite Limited is set to make its share trading debut in the first week of April on the bourses under 'N' category, officials said.

The company's initial public offering (IPO) shares has been credited into respective beneficiary owner (BO) accounts on March 07, according to Central Depository Bangladesh Limited (CDBL).

Despite the company's IPO shares were credited into respective BO accounts in the first week of this month, the trading debut was delayed due to sluggish market trend, said a DSE official, seeking anonymity.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), eroded 218 points or 3.80 per cent during March amid thin participation of investors.

Esquire Knit Composite, which received IPO approval from the securities regulator on September 26, 2018, raised a total capital worth Tk 1.50 billion through issuing 34.89 million ordinary shares under the book-building method.

The IPO subscription period for the company, a business unit of the Esquire Group, was held between January 06 and January 20, 2019.

Esquire Knit will make debut as 54th listed company in the textile sector on the Dhaka Stock Exchange (DSE). The textile sector accounted for about 5.0 per cent of the prime bourse's total market-cap.

Of the total shares, 60 per cent or 20.83 million shares (worth Tk 937 million) were reserved for eligible investors at a cut-off price. The remaining shares are offered for public subscription.

The cut-off price of Esquire Knit share was fixed at Tk 45 each on July 14 last year by the institutional investors through electronic bidding.

The remaining 40 per cent or 14.06 million shares issued to the general investors, including affected small investors and non-resident Bangladeshis.

The general investors got IPO shares at 10 per cent discount on the cut-off price, meaning they got each share of the company at Tk 40.

The IPO proceeds will be used to procurement of garment machinery for new project (28.76 per cent), building and civil construction (66.95 per cent) and to meet the IPO expenses (4.29 per cent).

The bidding of shares under book-building method took place from July 9 to 12. The export-oriented knit garments company held a road show in April 2017.

Prime Finance Capital Management is the issue manager of the Esquire Knit IPO.

The company's pre-IPO paid-up capital is Tk 1.0 billion and authorised capital is Tk 2.0 billion.

The company's basic earnings per share (EPS) was Tk 3.44 and the net asset value (NAV) per share (with revaluation) Tk 49.27 at the end of June 30, 2018.

Located at Sonargaon in Narayanganj, Esquire Knit is 100 per cent export oriented company which started commercial operation in 2001.

The company produces different types of knit garments through its six units -- knitting, fabric, printing, embroidery, industrial laundry and garments and sells the same to foreign buyers.

Runner Automobiles: Runner Automobiles will also make its share trading debut soon as the company's IPO shares has already been credited into respective BO accounts.

The company's IPO share has been credited into respective BO accounts on March 25, according to CDBL.

Runner Automobiles, a flagship company of Runner Group, raised a fund worth Tk 1.0 billion by floating 13.93 million shares from the capital market under the book-building method.

The IPO subscription of the company was held between January 31 and February 10.

The cut-off price of the shares of motorcycle maker fixed at Tk 75 each as discovered by eligible investors (EIs) through bidding under the book-building method.

Of 13.93 million shares, more than 8.33 million shares (60 per cent) issued to the eligible institutional investors at the cut-off price of Tk 75 each.

The remaining 5.60 million shares (40 per cent) issued to general investors through IPO at Tk 67 each, after a 10 per cent discount on the cut-off price.

According to financial statements of the motorcycle maker for the year ended on June 30, 2017, the company's net asset value (NAV with revaluation) per share stood at Tk 55.70. The NAV without revaluation was Tk 41.94.

The weighted average of the EPS (earnings per share) is Tk 3.31.

IDLC Investments Limited is the issue manager of the IPO.

Runner Automobiles, which started its journey in 2000, is engaged in manufacturing two-wheelers in Bangladesh. It also started exporting motorcycles to Nepal in January 2017.

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