The stock market regulator gave its approval at a meeting in the capital presided over by BSEC Chairman M Khairul Hossain on Thursday
The Bangladesh Securities and Exchange Commission (BSEC) has approved an Initial Public Offering (IPO) prospectus of Esquire Knit Composite Limited (EKCL) which the company hopes will raise Tk150 crore.
The stock market regulator gave its approval at a meeting in the capital presided over by BSEC Chairman M Khairul Hossain on Thursday.
The company will float 34,895,833 ordinary shares to raise Tk150 crore using the book building method, a process through which an issuer attempts to determine the price to offer for its shares based on the demands of institutional investors.
As such, eligible investors are being offered 20,833,332 shares - 60% of the total available - at an offer price of Tk45 each.
Under the book building method, the remaining 40% of the shares are offered to other investors, including general investors and non-resident Bangladeshis, at a 10% discount on the cut-off price.
Consequently, the remaining 10,462,501 shares in EKCL have an offer price of Tk40 each.
Located at Sonargaon in Narayanganj, EKCL launched its commercial operations in 2001, with knitting, fabric dyeing and finishing facilities all housed under its one roof.
As per the financial statement ended on June 30, 2017, the company’s weighted average Earning per Share (EPS) stood at Tk2.52 and its Net Asset Value (NAV) per share (with revaluation) was Tk 45.83 and Tk25.96 without revaluation.
The company will utilise the IPO proceeds to buy capital machinery, construct building establishments and for bearing the expenses of the IPO process.
Prime Finance Capital Management Limited will act as the issue manager for the IPO process.
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