Written by The Banking Post
Export-oriented footwear manufacturer Shoeniverse Footwear Ltd plans to raise Tk1 billion through an initial public offering (IPO) and expects to submit its application to the Bangladesh Securities and Exchange Commission (BSEC) within a month.
The company will seek to raise the funds under the fixed-price method to finance its expansion programme, said Managing Director Riad Mahmud.
As part of the listing process, Shoeniverse Footwear, a concern of National Polymer Group, recently signed an issue management agreement with LankaBangla Investments. The company plans to list on the main board of the country’s stock exchanges.
Established in 2017, Shoeniverse operates a green manufacturing facility in Mymensingh with a production area of around 231,718 square feet and employs more than 2,700 workers. The company manufactures synthetic footwear for export markets and is expanding production capacity to meet rising global demand, according to a press release.
Subject to regulatory approval, the IPO proceeds will be used to finance the expansion, increase production capacity and strengthen the company’s position in Bangladesh’s growing footwear export market.
Shoeniverse’s planned listing comes as interest in the IPO market begins to revive. Recently, DBL Group announced plans to raise about Tk1 billion by listing two subsidiaries—Parkway Packaging and Printing and Thanbee Print World—by March next year to support capacity expansion and working capital needs.
Both companies have appointed Shanta Equity as issue manager and intend to list on the main board. DBL Group also plans to bring another four to five companies to the capital market over the following four years.
The planned listings by National Polymer Group and DBL Group come after more than two years without a new company entering the stock market. Market participants believe the IPOs could expand investment opportunities and help reinvigorate the capital market.
