The Initial Public Offering (IPO) of Esquire Knit Composite Limited (EKCL) will begin today (Sunday), with the company aiming to raise Tk150 crore from the sale of shares.
The IPO will stay open for both resident and non-resident Bangladeshis till January 20. The company will float 34,895,833 ordinary shares, of which eligible investors have already subscribed to 20,833,332 shares, or 60% of the total shares. The IPO cut-off price for the general public is Tk 40.
By the book-building method, EKCL offered 40% of its total shares to eligible investors at a price of Tk 45.
A total of 508 registered eligible institutional investors took part in the bidding at price levels between Tk15 and Tk53, following which the company's cut-off price was fixed at Tk45 each.
The Bangladesh Securities and Exchange Commission (BSEC) approved EKCL's IPO on September 27, 2018. Bidding for the IPO was held from July 9 to 12, 2018.
Located at Sonargaon in Narayanganj, EKCL launched its commercial operations in 2001, with knitting, fabric dyeing, and finishing facilities all housed under one roof.
EKCL's major buyers include C&A, Bestseller, Esprit, Mascot, Celio, Next, Tee Jays, and Lidl.
According to the financial statement ending June 30, 2018, the company’s weighted average Earnings Per Share (EPS) stood at Tk3.44. Its Net Asset Value (NAV) per share stood at Tk49.27 with revaluation, and Tk29.40 without revaluation.
Prime Finance Capital Management Limited is the IPO issue manager, while ICB Capital Management Limited will act as the registrar.