FE Online Report
Evince Textiles Limited (ETL) will make its share trading debut on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) tomorrow (Sunday) under “N” category, officials said. DSE trading code for Evince Textiles is “ETL” and DSE company code is 17472, while the CSE scrip ID is 12060 and scrip code is “ETL”.
Evince Textiles Limited, which raised Tk 170 million through initial public offering under the fixed price method, will be the 45th listed firm in the textile sector that accounts for around 4.0 percent of the premier bourse’s total market capitalisation. The garment manufacturer floated 17 million ordinary shares at an offer price of Tk 10 each and raised Tk 170 million from the public. IPO subscription of the company, held between May 01 and May 12, was oversubscribed by 33 times as the company received around Tk 5.60 billion against IPO issue of Tk 170 million.
The securities regulator Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of the Evince Textile on April 04 this year. The regulatory approval to the IPO proposal of Evince Textiles is the first approval after the amendment of Public Issue Rules 2015. According to the latest amendments to public issue rules, only the companies interested to offer their stocks at face value will be allowed to float IPO under the fixed price method, while the ‘book building’ method is mandatory for the companies willing to offer their primary shares with premium. Evince Textile has reported a consolidated profit after tax of Tk 36.93 million and consolidated basic EPS of Tk 0.36 for the three months January to March 2016, as against consolidated profit after tax of Tk 33.10 million and consolidated basic EPS of Tk 0.32 for the same period of the previous year.
However, considering Post-IPO 120,000,000 number of shares, the company’s consolidated basic EPS for January-March period would be Tk 0.31 and consolidated NAV per share would be Tk. 16.84 as on March 31, 2016. The company will utilise the fund for boosting working capital and civil construction and modernising the machinery along with bearing the IPO expenses, according to the IPO prospectus.
The securities regulator Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of the Evince Textile on April 04 this year. The regulatory approval to the IPO proposal of Evince Textiles is the first approval after the amendment of Public Issue Rules 2015. According to the latest amendments to public issue rules, only the companies interested to offer their stocks at face value will be allowed to float IPO under the fixed price method, while the ‘book building’ method is mandatory for the companies willing to offer their primary shares with premium. Evince Textile has reported a consolidated profit after tax of Tk 36.93 million and consolidated basic EPS of Tk 0.36 for the three months January to March 2016, as against consolidated profit after tax of Tk 33.10 million and consolidated basic EPS of Tk 0.32 for the same period of the previous year.
However, considering Post-IPO 120,000,000 number of shares, the company’s consolidated basic EPS for January-March period would be Tk 0.31 and consolidated NAV per share would be Tk. 16.84 as on March 31, 2016. The company will utilise the fund for boosting working capital and civil construction and modernising the machinery along with bearing the IPO expenses, according to the IPO prospectus.
LankaBangla Investments acted as the issue manager of the company's IPO. Set up in 2003, Evince Textiles currently produces over a million yards of cotton shirting fabrics a month, according to the company's website. Evince Textiles is the second listed company of Evince Group. In 2013, the Evince Group’s Argon Denim was listed with bourses.
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