• Saturday, October 25, 2014

Far East Knitting debuts on bourses today

Star Business Report

Far East Knitting and Dyeing Industries will make its share trading debut on the Dhaka and Chittagong stock exchanges today.

The company, which raised Tk 67.5 crore through initial public offering (IPO), will be the 35th listed firm in the textile sector that accounts for around 4 percent of the premier bourse's total market capitalisation.

The export-oriented garment manufacturer floated 2.5 crore ordinary shares of Tk 10 each at an offer price of Tk 27 each, including Tk 17 as premium.

IDLC Investments managed the IPO, the proceeds of which are being used for BMRE (balancing, modernisation, rehabilitation and expansion) and to repay term loans of banks.

As of March 2014, the company's net profit was Tk 18.6 crore with basic earnings per share (EPS) of Tk 2.04.

However, the company's post-IPO basic EPS was Tk 1.6 as of March 2014 and net asset value per share Tk 22.39.

Bangladesh Securities and Exchange Commission approved Far East Knitting IPO on March 25, and the Dhaka Stock Exchange gave a go-ahead to the listing of the company on August 14.

Far East Knitting supplies finished goods to some renowned apparel brands in the world including Wal-Mart, Primark, New Look and Bershka. Its major products are knitwear such as T-shirt, tank top and vest, and jacket.

Published: 12:00 am Thursday, August 28, 2014

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