Envoy Textiles IPO subscription begins October 16, ends October 22

The initial public offering (IPO) subscription of Envoy Textiles Limited (ETL), a manufacturer of high quality fashion denim in Bangladesh, begins today (Tuesday), officials said.

The subscription will remain open till October 22 for resident Bangladeshis and October 31 for non-resident Bangladeshis. The company also opens a separate form for affected small investors in line with the regulator’s directive.

The company will raise a fund worth Tk 900 million through the IPO with an aim to expand its existing business by increasing its capacity of 24 million yards of denim fabrics per year by setting up a fully automated state of the art rope denim plant.

The securities regulator approved the IPO subscription proposal of Envoy Textiles on October 10. As per approval given by the SEC, Envoy Textiles will offload 30 million ordinary shares at an offer price of Tk 30, including a premium of Tk 20 for each share of Tk 10. A market lot 200 shares of the company.

As per the audited financial statement for the year 2010-2011, the company’s basic earning per share (EPS) is Tk 4.42 while the net asset value of Tk 37.62 (including revelation reserve).

LankaBangla Investments Limited is the lead issue manager while ICB Capital Management has been appointed as Co-Issue managers of Envoy Textiles.

Earlier, the SEC postponed the subscription of Envoy Textiles IPO following its application which was supposed to begin on July 29 due to the turmoil at the capital market that hit hard the primary market.

The Envoy Textile is a manufacturing of cent per cent export oriented denim fabric. The company manufactures denim products featuring a wide range of yearn and waves in various shades of indigo and black.

ETL established in 2005, started the commercial production in early 2008, within the short period of time, ETL is now one of the largest denim fabric producing units in Bangladesh.

Source: The Financial Express, October 16, 2012