Far East Knitting IPO approved

FE Report | Published: March 26, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

The securities regulator Tuesday approved the IPO (initial public offering) proposal of Far East Knitting and Dyeing Industry (FEKDI) for raising a fund worth Tk 675 million under the fixed price method, officials said.
At Tuesday's meeting the regulator of the capital market has also approved the proposals of issuing Tk 3.0 billion Coupon-Bearing Subordinated Bond by Mercantile Bank and draft prospectus and investment management deal of an open-end mutual fund.
The approves came at a commission meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
As per the BSEC approval, the FEKDI will offload 25 million ordinary shares at an offer price of Tk 27, including a premium of Tk 10 for each ten taka share.
The company will raise a fund worth Tk 675 million for the purpose of BMRE (Balancing, Modernization, Rehabilitation and Expansion) and repayment of bank's term loans.
As per the financial statement for the year ended on June 30, 2013 and audited financial statement of previous five years, the company's weighted average earning per share (EPS) and the re-valued net asset value (NAV) are of Tk 3.28 and Tk 19.08 respectively.
The company said in its website, since the inception in 1994 the FEKDI maintains high standards in manufacturing garment products for the globe's renowned brands by using a mix of the latest machinery imported from Singapore, Taiwan, Greece, South Korea, Turkey and USA.
The IDLC Investment Limited has been appointed the issue manager to the FEKDI.
The BSEC has approved the audited financial statement and the trustee report prepared for liquidation of the First BSRS Mutual Fund.
As per the prepared statements, the unit holders of the First BSRS Mutual Fund will get Tk 105.32 against each unit.
The UFS Unit Fund, which Tuesday got regulatory consent, will for operation with an initial size of Tk 100 million and the Universal Financial Solutions has been appointed its fund manager.
In accordance with the BSEC approval, the tenure of Tk 3.0 Coupon-Bearing Subordinated Bond of the Mercantile Bank will be seven years.
The bank will be able to sell the bonds as private placements to, other than the existing shareholders, the banks, non-banking financial institutions (NBFIs), corporate institutions, insurers, fund managers, mutual funds, merchant banks and individuals having high net worth.