Far East Knitting and Dyeing Industries Ltd, a Gazipur-based garment company, is set for the stockmarket to raise Tk 150 crore from investors to expand operations.
The company held a roadshow at Dhaka Sheraton Hotel yesterday for price discovery under the newly introduced book-building method.
Managing Director of Far East Knitting and Dyeing Asif Moyeen said the face value of each share has been fixed at Tk 10 and the proposed premium at Tk 40.
“We will offload three crore ordinary shares to raise the amount,” Moyeen said.
Of the total fund, Tk 80 crore would be spent on establishing a spinning mill at Nouhati, 124 kilometres north-east of Dhaka on Dhaka-Sylhet highway under Habiganj district, Moyeen said.
“I have a target to go into production at a 26,000 spindles capacity spinning mill within October 2012,” he said.
The company will spend Tk 30 crore on expansion of units such as printing, embroidery and dyeing.
The rest of the money will go into paying off the company’s liabilities.
The company established in 1994 has exported garment items worth Tk 130 crore in fiscal 2009-10, the company managing director said.
Moyeen said his company sends 65 of his products to UK’s Tesco, Newlook, Kevinham and Mackay.
Monoprix and Promode, two brands of France, import 25 percent of his products.
The paid-up capital of the company is Tk 6.4 crore. It received approval from the Securities and Exchange Commission on December 29 last year for floating an initial public offering under the book-building method. IDLC Finance Ltd is acting as the Issue manager for the IPO.