FE Report
The initial public offering (IPO) subscription of Tosrifa Industries, a flagship of Northern Tosrifa Group, has been oversubscribed by 10.50 times against public issue, officials said.
Total subscription was valued at Tk 6.70 billion against public issue of Tk 638.72 million, which was oversubscribed by 10.50 times, according to final data from the Chittagong Stock Exchange (CSE).
Of the total subscription, Tk 5.16 billion came from general public, Tk 511.22 million from affected small investors, Tk 214.03 million from non-resident Bangladeshis (NRBs), and Tk 816.21 million from mutual fund.
The garment manufacturer floated more than 24.56 million ordinary shares at an offer price of Tk 26, including a premium of Tk 16 for each ten-taka share, according to the company's IPO prospectus.
The IPO subscription was held in late March and early April this year and the company raised Tk 638.56 million fund from members of the public.
The company offered its 60 per cent shares for general investors, 20 per cent for small affected investors, 10 per cent for NRBs and 10 per cent for mutual funds.
The company will use the funds from the initial public offering for expansion of business to the extent of 96.88 per cent and IPO expenses of 3.12 per cent.
The company's earnings per share (EPS) as of December 2013 stood at Tk 2.49 with a net asset value (NAV) per share of Tk 34.41.
IDLC Investments is acting as issue manager of the Tosrifa Industries' IPO.
Presently, 40 textile companies are listed on Dhaka Stock Exchange (DSE) that accounts for around 5.0 per cent of the premier bourse's total market capitalisation.
The securities regulator - the Bangladesh Securities & Exchange Commission (BSEC) -approved the IPO proposal of Tosrifa Industries on February 10, 2015.
Tosrifa Industries is a 100 per cent export- oriented knit apparels manufacturer in Bangladesh. It was established at Tongi, Gazipur in 2002, according to the company's website.
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