The securities regulator has approved the IPO (initial public offering) proposal of Kattali Textile which will raise a capital worth Tk 340 million.
The Bangladesh Securities and Exchange Commission (BSEC) Tuesday approved the IPO proposal at a meeting held at BSEC office.
Under the fixed price method, Kattali Textile will offload 34 million ordinary shares at an offer price of Tk 10 each.
The company's IPO fund will be utilised to construct building for factory and employees' dormitory, purchase machinery for extended unit, install electric transformer and generator, repay bank loan and bear IPO expenses.
As per the financial statement for the year ended on June 30, 2017, the company's net asst value (NAV), without revaluation, is Tk 20.48 per share.
And the earnings per share (EPS) is Tk 1.98.
NRB Equity Management is working as issue manager of Kattali Textile.
Kattali Textile is a production unit of Asian Group established in 2002 with the aim to cater to world-class buyers and as such the facility complies with all the latest requirements of structural, environmental, social and ethical standards, according to company's website.
"The factory is certified by Wal-Mart,Garan and Golden Touch."