The bidding for discovering the cut-off price of Esquire Knit Composite's IPO shares by eligible investors is set to begin Monday (July 9).
The bidding of the company's shares will be continued round-the-clock until 5.00pm on July 12, officials said.
Esquire Knit Composite, a business unit of Esquire Group, will raise a capital worth Tk 1.50 billion under the book building method for its business expansion.
The Bangladesh Securities and Exchange Commission (BSEC) allowed the company to conduct bidding its shares to discover IPO price of its shares on January 23.
The export-oriented knit garments factory held a road show for institutional investors in April 2017 as part of its plan for the initial public offering (IPO).
Book building is a process through which an issuer attempts to determine the price to offer for its shares based on demand from institutional investors.
According to the Dhaka Stock Exchange, the institutional investors, who will not participate in the bidding during the bidding period, will not be able to participate in the offer period.
As per the revised book-building method, the institutional investors will get 60 per cent of its issued shares at the cut-off price which will be set by the eligible investors through electronic bidding.
The remaining 40 per cent shares are then opened for the IPO participants, including affected small investors and non-resident Bangladeshis, at 10 per cent discount on the cut-off price.
Esquire Knit will use the IPO proceed for buying machinery, constructing building and civil construction, and to meet the IPO expenses.
Prime Finance Capital Management is the issue manager of the Esquire Knit IPO.
Currently, the company's paid-up capital is Tk 1.0 billion and authorised capital is Tk 2.0 billion.
Esquire Knit's revenue stood at Tk 4.45 billion for the year that ended on June 30, 2017. Its net profit was Tk 312 million.
The company's weighted earnings per share of the company was Tk 2.52 and net asset value (NAV) per share (with revaluation reserve) Tk 45.83 at the end of June 30, 2017.
Located at Sonargaon in Narayanganj, Esquire Knit has been emerging as a conglomerate with knitting, fabric dyeing and finishing facilities under one roof since its commercial launch in 2001.
The knitting unit of the company has a capacity of producing over 2.0 million pieces of garments per month.
The Esquire Group currently employs over 8,000 people, serving customers in European and American Chain stores, fashion brands and super markets.
At present, 50 textiles and garment companies are listed on DSE, accounting for about 4.0 per cent of total market capitalisation.