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BSEC approves LankaBangla’s Subordinated Bond of Tk300 crore, IPO of New Line Clothings

  • Published at 10:40 pm November 27th, 2018
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File photo of Bangladesh Securities and Exchange Commission Office in Dhaka Syed Zakir Hossain/Dhaka Tribune

According to the financial statement ended on June 30, 2017, the company's Net Asset Value (NAV) per share stood at Tk20.52 (without revaluation), whereas the weighted average of Earnings per Share (EPS) was Tk1.85

The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved the Initial Public Offering (IPO) prospectus of New Line Clothings Ltd to raise Tk30 crore, while it gave a go-ahead to LankaBangla Finance Limited to issue a Non-convertible Floating Rate Subordinated Bond worth Tk300 crore.

The approvals were given at a commission meeting held at its headquarters. BSEC Chairman M Khairul Hossain presided over the meeting, said a BSEC statement.

Under the fixed price method, New Line Clothings will offload three crore ordinary shares of Tk10 each to raise Tk30 crore. 

According to the financial statement ended on June 30, 2017, the company's Net Asset Value (NAV) per share stood at Tk20.52 (without revaluation), whereas the weighted average of Earnings per Share (EPS) was Tk1.85.

The company will utilise the IPO proceeds to repay bank loans, purchase capital machinery and to bear IPO expenses.

Banco Finance and Investment Limited, Shandhani Life Finance Limited and SoutheastBank Capital Services Limited will act as the issue managers for the IPO process.

The company having its registered office and factory at its own premises at Mouchak, Kaliakair, Gazipurstarted its commercial operation on March 01, 2007. 

The principal activities of the company is to manufacture various kinds of woven garments for both ladies and gents including trousers, shirts, children’s wear, gents wear, ladies wear, jackets, sportswear, denim garments and marketing the products.

Also at Tuesday’s meeting, the BSEC approved LankaBangla Finance’s Non-convertible Floating Rate SubordinatedBond, worth Tk300 crore.

The purpose of the issue is to strengthen the capital base of the company. The tenure of the LankaBangla Finance bonds will be six years. Per unit price of the bond will be Tk1 crore.

The units will be sold to banks, financial institutions, insurance companies, corporate bodies, asset management companies, mutual funds and high net-worth individuals through private placements.

The proceeds of the Bond will strengthen its capital base and meet its capital requirement through private placement, subject to the approval from Bangladesh Bank, company officials said.

Roots Investment Limited will act as the Trustee for the Bond.