|Published : 13 Nov 2016, 21:21:17|
IPO subscription of Pacific Denims set to begin next month
The initial public offering (IPO) subscription of Pacific Denims is set to begin on December 11, which will raise Tk 750 million from the public, using the fixed price method, officials said.
The export-oriented garment and denim fabric producer's IPO subscription will continue till December 19 for resident and non-resident Bangladeshis.
The securities regulator - Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of Pacific Denims on September 1 to raise the said amount from the public.
As per the securities regulator's approval, the export-oriented garment and denim fabric producer will float 75 million ordinary shares of Tk 10 each to raise Tk 750 million.
The company will use the funds from the initial public offering for its business expansion, loan repayments and IPO expenses. The company's weighted average earnings per share (EPS) stood at Tk 2.63 and net asset value (NAV) without revaluation per share at Tk 22.59 as of December 2015. AFC Capital will manage the Pacific Denims IPO.
At present, 45 textiles and garment companies are listed on Dhaka Stock Exchange (DSE), accounting for about 4.0 per cent of the premier bourse's total market capitalisation. Located at Pacific Integrated Industrial Park in Munshiganj, Pacific Denims is one of the largest mills in the denims industry in Bangladesh.
Its yearly production capacity is 18 million yards of denim fabrics, according to the company's website. Mark & Spencer, Tesco, Zara, H&M and Wal-Mart are the international buyers of Pacific Denims.