Queen South Textile Mills is set to begin its initial public offering (IPO) subscription on January 7, 2018 which will raise a fund of Tk 150 million from the public.
Meanwhile, rights share subscription of Alif Manufacturing Company will start on January 30, 2018 which will raise a capital worth Tk 1.09 billion through rights issue.
Queen South Textile: The IPO subscription of eligible investors through electronic subscription system under fixed price method of the textile company will be continued till January 15 for resident and non-resident Bangladeshis.
The securities regulator -- Bangladesh Securities & Exchange Commission (BSEC) -- approved the IPO proposal of Queen South Textile on November 14 to raise Tk 150 million under the fixed price method.
The company will float 15 million ordinary shares of Tk 10 each for raising the said amount.
A market lot is 500 shares and an investor needs Tk 5,000 to apply for per lot of the company's IPO.
The required amount (per lot) of foreign currency for NRBs and foreign applicants for IPO of the company are US$ 60.83 or GBP 45.51 or EUR 51.90, according to Dhaka Stock Exchange (DSE).
The textile company will be used the IPO fund for construction of automatic warehouse system, acquisition and installation of new machineries for modernisation of the existing factory unit, partial loan repayment of banks and bearing the IPO expenses.
As per the entity's audited financial statement for the year ended on December 31, 2016, the company's net asset value per share and weighted average earnings per share were Tk 16.20 and Tk 1.42 respectively.
The company's pre-IPO paid-up capital is Tk 851 million and authorised capital is Tk 2.0 billion, according to the company's IPO prospectus.
Alpha Capital Management is the issue manager of the company's IPO.
Queen South Textile Mills, established in 2003, is located at Dhaka Export Processing Zone at Savar.
The company operates its business as a backward linkage industry and engaged in dyeing different count of cotton yarns to the sweater industry, knitting industry and the weaving industry.
Currently, 48 companies are listed with the Dhaka Stock Exchange (DSE) under textile sector, which accounts for around 3.50 per cent of the DSE's total market capitalisation.
Alif Manufacturing Company: Rights share subscription of Alif Manufacturing Company will begin on January 30, 2018 which will raise Tk 1.09 billion through rights issue.
Rights subscription of Alif Manufacturing Company, which was known as CMC Kamal Textile Mills, will be continued till February 15, 2018.
The record date for entitlement of rights shares is on January 11, according to a disclosure posted on the Dhaka Stock Exchange (DSE).
Alif Manufacturing, which received regulatory approval from the Bangladesh Securities and Exchange (BSEC) on December 19, will issue one rights share against one existing share at par.
The company will raise a capital worth above Tk 1.09 billion by issuing above 109 million ordinary shares at an offer price of Tk 10 each.
The company will utilise the fund for BMRE (Balancing, Modernisation, Rehabilitation and Expansion) purpose along with fulfilling the condition of capital expansion.
As per the rights share document, the company's net asset value (NAV) per share has stood at Tk 18.43 as of March 31, 2017, while the earnings per share (EPS) stood at Tk 1.31 during July 1, 2016 to March 31, 2017.
Citizen Securities and Investment is the manager to the rights issue of Alif Manufacturing Company.
The company's board of directors has recommended 11 per cent cash dividend for the year ended on June 30, 2017.
Each share of the company closed at Tk 24.60 on Sunday at the premier bourse.
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