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IPO subscription of Ring Shine Textiles begins Aug 25

  • Published at 09:36 pm August 18th, 2019
Representational photo Bigstock

The company will offload ordinary shares worth Tk 150crore under the fixed price method

The initial public offering (IPO) of Ring Shine Textiles Ltd (RSTL) begins on August 25, with the company aiming to raise Tk150 crore by offloading 150 million ordinary shares under the fixed price method.

The IPO will stay open for both resident and non-resident Bangladeshis till September 9 this year.

A market lot consists 500 shares and an investor has to submit Tk5,000 to apply for each lot of the company's IPO shares priced at Tk10 each.

For non-resident Bangladeshi and foreign applicants, the required amount (per lot) for subscription is $59.71, according to the Dhaka Stock Exchange (DSE).

The Bangladesh Securities and Exchange Commission (BSEC) approved Ring Shine Textiles' IPO on March 12.

As per the BSEC approval, the IPO fund will be used for procurement and installation of machinery for the existing factory unit, partial repayment of bank loans of the company and to meet the IPO expenses within 18 months after receiving the IPO funds.

According to the financial statement of June 30, 2018, the company's net asset value (NAV) per share stood at Tk23.17, while the weighted average of earnings per share (EPS) was Tk1.46.

AFC Capital Limited and CAPM Advisory Limited will act as the issue manager for the IPO process.

Authorized capital of the company stands at Tk440 crore and paid-up capital stands at Tk285 crore.

The major activities of the RSTL is manufacturing and marketing gray and finished fleece fabrics of various qualities, and dyed yarn to the ready-made garment (RMG) industry of Bangladesh.

RSTL commenced commercial operation in August, 1998, and converted to a public limited company on June 8, 2017.

After completing all the procedures, the company will be the 56th listed company in the textile sector in the DSE.