IPO lottery of Queen South Textile Mills Limited will be held on Thursday next (February 1) to allocate 15 million ordinary shares among the successful applicants.
The lottery programme was held at 10:30am at the auditorium of Institute of Engineers, Bangladesh (IEB) in Dhaka.
The IPO result has been published on the websites of Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and the company.
Using the fixed price method, the Queen South Textile, floated 15 million ordinary shares of Tk 10 each and raised Tk 150 million from the public.
The IPO subscription of eligible investors through electronic subscription system under fixed price method of the textile company was held between January 7 and January 15 for resident and non-resident Bangladeshis.
The securities regulator—Bangladesh Securities & Exchange Commission (BSEC)—approved the IPO proposal of the textile company on November 14 to raise Tk 150 million under fixed price method.
The Queen South Textile will use the IPO fund for construction of automatic warehouse system, acquisition and installation of new machinery for modernisation of the existing factory unit, partial loan repayment of banks and bearing the IPO expenses.
As per the entity’s audited financial statement for the year ended on December 31, 2016, the company’s net asset value per share and weighted average earnings per share were Tk 16.20 and Tk 1.42 respectively.
The company’s pre-IPO paid-up capital is Tk 851 million and authorised capital is Tk 2.0 billion, according to the company’s IPO prospectus.
Alpha Capital Management is the issue manager of the company’s IPO.
Queen South Textile Mills, established in 2003 is located at Dhaka Export Processing Zone at Savar.
The company operates its business as a backward linkage industry and engaged in dyeing different count of cotton yarns to the sweater industry, knitting industry and the weaving industry.
Currently, 49 companies are listed with the Dhaka Stock Exchange under textile sector, which account for around 3.50 per cent of the DSE’s total market capitalisation.
