Export-oriented footwear manufacturer Shoeniverse Footwear Ltd is planning to raise Tk 1 billion through an initial public offering (IPO) to support its expansion plans.
It has considered the fixed-price method to collect the fund, said Riad Mahmud, managing director of Shoeniverse Footwear, while talking to the Financial Express over the phone.
The company looks to submit its IPO application to the Bangladesh Securities and Exchange Commission (BSEC) within a month for regulatory approval, said Mr Mahmud, who also serves as president of the Bangladesh Association of Publicly Listed Companies (BAPLC).
As part of the listing process, Shoeniverse Footwear, a concern of National Polymer Group, recently signed an issue management agreement with LankaBangla Investments.
The shoemaker will seek listing on the stock exchanges' main boards.
Established in 2017, Shoeniverse Footwear operates a green manufacturing facility in Mymensingh with a production area of approximately 231,718 square feet and employs more than 2,700 workers. It manufactures synthetic footwear for export markets with a focus on quality, innovation, and sustainable production, according to a press release.
The company is implementing a major capacity expansion programme to increase production and strengthen its competitiveness in the global footwear market amid growing global demand.
Subject to BSEC approval, the IPO proceeds will be used to finance the expansion programme, enhance production capacity, and reinforce the company's position in Bangladesh's growing footwear export market.
LankaBangla Investments is one of the country's leading investment banks and has been actively involved in managing IPOs and other capital market transactions.
The proposed IPO of Shoeniverse Footwear follows a recent announcement by DBL Group that it will list two of its subsidiaries as part of a long-term strategy to strengthen corporate governance and ensure business sustainability.
Initially, the DBL Group aims to raise around Tk 1 billion through IPOs of Parkway Packaging and Printing and Thanbee Print World by March next year to finance capacity expansion and meet working capital requirements.
Both companies plan to seek listing on the stock exchanges' main boards and have already appointed Shanta Equity as the issue manager for the proposed IPOs.
According to the group's roadmap, another four to five companies will be brought to the capital market over the following four years after the successful completion of the first two listings.
National Polymer Group and DBL Group are going to enter the stock market at a time when the IPO flow has dried up, with no company having been listed in more than two years.
Market participants expect the IPOs to broaden investment opportunities and inject fresh momentum into the capital market.
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