The initial public offering (IPO) subscription of Regent Textile Mills Ltd (RTML) will begin on October 14 to raise a fund worth Tk 1.25 billion from the public, officials said. The IPO subscription will remain open until October 24 for resident and non-resident Bangladeshis (NRBs). The investors can apply for Regent Textile IPO only through their respective brokerage houses and merchant banks under the mandatory IPO application system. The securities regulator has made the submission of application for the IPO through merchant banks and brokerage houses mandatory recently instead of applying through banks to reduce the processing time from more than five weeks to three weeks. Using the fixed price method, the export-oriented textile maker is set to float 50 million ordinary shares of Tk 10 each at an offer price of Tk 25, with Tk 15 as premium. The company will utilise the fund for the purpose of BMRE (Balancing, Modernisation, Replacement and Expansion) along with setting up new business project. The market lot is 200 shares and an investor needs Tk 5,000 to apply for each lot. The company has offered 60 per cent shares (150,000 lots) for general public, 20 per cent (50,000 lots) for affected small investors, 10 per cent (25,000 lots) for NRBs and 10 per cent (25,000 lots) for mutual funds. The company's earnings per share (EPS) and net asset value (NAV) are Tk 2.92 and Tk 33.17 respectively, according to financial statement for the year ended on December 31, 2013. LankaBangla Investment is working as the issue manager for Regent. The securities regulator Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of the company on August 24 this year. Regent Textile Mills, a concern of Chittagong-based Habib Group, started commercial operation in 1999. The company has annual capacity to weave 12 million metres and dye and print another 14 million metres. The textile mill holds a capacity to produce approximately 40,000-50,000 metres of fabrics per day. The company exports its products to a number of global retailers, such as Walmart, Heimtex AB, Red Cats Asia, Princess Groppen AS, New wave Group SA, Bonfrix, Silex Vyvoz A Dovoz SRO, Lidl and Siplec, according to the company's website.
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Regent Textile IPO subscription opens next month
FE Team | Published: September 18, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
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