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If you have any query about this document, you may consult issuer, issue managers and underwriters
PPRROOSSPPEECCTTUUSS FOR
PUBLIC OFFER OF 30,000,000 ORDINARY SHARES OF TK. 10.00 EACH AT AN ISSUE PRICE OF TK. 30.00 EACH INCLUDING A PREMIUM OF TK. 20.00 PER SHARE TOTALING TO TK. 900,000,000.00
OF
EENNVVOOYY TTEEXXTTIILLEESS LLIIMMIITTEEDD ((EETTLL))
UUNNDDEERRWWRRIITTEERRSS
BMSL Investment Limited ICB Capital Management Limited
LankaBangla Investments Limited
CCRREEDDIITT RRAATTIINNGG SSTTAATTUUSS
Long Term Short Term
Entity Rating AA3 ST-2 Rating Date October 16, 2011 Rated by CREDIT RATING AGENCY BANGLADESH (CRAB) Validity of the Rating September 30, 2012
CONSENT OF THE SECURITIES AND EXCHANGE COMMISSION HAS BEEN OBTAINED TO THE ISSUE/OFFER OF THESE SECURITIES UNDER THE SECURITIES AND EXCHANGE ORDINANCE, 1969, AND THE SECURITIES AND EXCHANGE COMMISSION (PUBLIC ISSUE) RULES, 2006. IT MUST BE DISTINCTLY UNDERSTOOD THAT IN GIVING THIS CONSENT THE COMMISSION DOES NOT TAKE ANY RESPONSIBILITY FOR THE FINANCIAL SOUNDNESS OF THE ISSUER COMPANY, ANY OF ITS PROJECTS OR THE ISSUE PRICE OF ITS SECURITIES OR FOR THE CORRECTNESS OF ANY OF THE STATEMENTS MADE OR OPINION EXPRESSED WITH REGARD TO THEM. SUCH RESPONSIBILITY LIES WITH THE ISSUER, ITS DIRECTORS, CHIEF EXECUTIVE OFFICER/CHIEF FINANCIAL OFFICER, ISSUE MANAGER, UNDERWRITER AND/OR AUDITOR.
Date of Publication of the Prospectus: June 07, 2012
The Issue shall be placed in N Category
LLEEAADD IISSSSUUEE MMAANNAAGGEERR
LLAANNKKAABBAANNGGLLAA IINNVVEESSTTMMEENNTTSS LLIIMMIITTEEDD Eunoos Trade Centre (Level # 21), 52-53, Dilkusha C/A, Dhaka - 1000, Bangladesh Phone: +88 02 711 35 85, 956 12 38 Fax: +88 02 711 57 56 e-mail: [email protected]; Website: www.lankabangla-investments.com
CCOO -- IISSSSUUEE MMAANNAAGGEERR
IICCBB CCAAPPIITTAALL MMAANNAAGGEEMMEENNTT LLIIMMIITTEEDD (A S U B S I D I A R Y O F I C B) BDBL Bhaban (Level # 16), 8, DIT Avenue, Dhaka 1000 Phone: +88 02 716 04 22, Fax: +88 02 955 57 07; email: [email protected]; Website: www.icbcml.com.bd
EENNVVOOYY TTEEXXTTIILLEESS LLIIMMIITTEEDD Envoy Tower (5th - 8th Floor), 18/E, Lake Circus Kalabagan (West Panthapath) Dhaka - 1205, Bangladesh Phone: +88 02 910 25 83-90 Fax: +88 02 910 31 28-29 e-mail: [email protected] Website: www.envoytextiles.com
OPENING DATE FOR SUBSCRIPTION: JULY 29, 2012 CLOSING DATE FOR SUBSCRIPTION: AUGUST 02, 2012
FOR NON-RESIDENT BANGLADESHI (NRB) QUOTA, OPENING DATE FOR SUBSCRIPTION: JULY 29, 2012 CLOSING DATE FOR SUBSCRIPTION: AUGUST 11, 2012
Prospectus | 2
ENVOY TEXTILES LIMITED
AAVVAAIILLAABBIILLIITTYY OOFF PPRROOSSPPEECCTTUUSS
Prospectus of the Envoy Textiles Limited may be obtained from the Issuer Company, the Issue Managers, the Underwriters and the Stock Exchanges as follows:
Issuer Company Contact Person Contact Number
ENVOY TEXTILES LIMITED Envoy Tower (5th - 8th Floor), 18/E, Lake Circus Kalabagan (West Panthapath), Dhaka-1205.
Mr. A. K. M. Siddiqur Rahman Company Secretary
Tel: +88 02 910 25 83-90 Fax: +88 02 910 31 28-29
e-mail: [email protected]
Managers to the Issue Contact Person Contact Number Lead Issue Manager
LANKABANGLA INVESTMENTS LIMITED Eunoos Trade Centre (Level # 21), 52-53, Dilkusha C/A, Dhaka - 1000
Mr. M Shakil Islam Bhuiyan
Chief Executive Officer
Tel: +88 02 711 35 85, 956 12 38 Fax: +88 02 711 57 56
e-mail:[email protected]
Co-Issue Manager ICB CAPITAL MANAGEMENT LIMITED BDBL Bhaban (Level # 16), 8, Rajuk Avenue, Dhaka - 1000
Mr. Md. Moshiur Rahman
Chief Executive Officer
Tel: +88 02 716 04 22 Fax: +88 02 955 57 07
e-mail: [email protected]
Underwriters Contact Person Contact Number
LANKABANGLA INVESTMENTS LIMITED Eunoos Trade Centre (Level # 21), 52-53, Dilkusha C/A, Dhaka - 1000
Mr. M Shakil Islam Bhuiyan Chief Executive Officer
Tel: +88 02 711 35 85, 956 12 38 Fax: +88 02 711 57 56
e-mail:[email protected]
ICB CAPITAL MANAGEMENT LIMITED BDBL Bhaban (Level # 16), 8, Rajuk Avenue, Dhaka - 1000
Mr. Md. Moshiur Rahman Chief Executive Officer
Tel: +88 02 716 04 22 Fax: +88 02 955 57 07
e-mail: [email protected] BMSL INVESTMENT LIMITED Sadharan Bima Tower (7th floor), 37/A Dilkusha C/A, Dhaka - 1000
Mr. Md. Golam Sarwar Bhuiyan
Managing Director
Tel: +88 02 956 70 02, 967 06 24 Fax: + 88 02 712 38 20
e-mail: [email protected]
Stock Exchanges Available At Contact Number
DHAKA STOCK EXCHANGE LIMITED (DSE) 9/F Motijheel C/A, Dhaka - 1000 DSE Library
Tel: +88 029 564601-7 +88 027 175703-11
CHITTAGONG STOCK EXCHANGE LIMITED (CSE) CSE Building, 1080, Sheikh Mujib Road, Agrabad C/A, Chittagong - 4100 Dhaka Liaison Office: Eunoos Trade Center (Level # 15), 52-53, Dilkusha C/A, Dhaka - 1000
CSE Library
Tel: +88 031 714 632-3
+88 031 720 871-3
Tel: +88 02 951 39 11-15
Prospectus is also available on the websites of Envoy Textiles Limited (www.envoytextiles.com), LankaBangla Investments Limited (www.lankabangla-investments.com), ICB Capital Management Limited (www.icbcml.com.bd), SEC (www.secbd.org), DSE (www.dsebd.org), CSE (www.csebd.com) and Public Reference Room of the Securities and Exchange Commission (SEC) for reading and study.
NAME AND ADDRESS OF THE AUDITOR
AHMAD & AKHTAR Chartered Accountants
BCIC Bhaban (3rd Floor), 30-31 Dilkusha C/A, Dhaka - 1000 Tel: +88 02 956 12 89 ; Fax: +88 02 956 43 66
e-mail: [email protected], [email protected]; Website: www.aacabd.com
mailto:[email protected]://www.envoy-group.com/mailto:[email protected]:[email protected]://www.aacabd.com/
Prospectus | 3
ENVOY TEXTILES LIMITED
TABLE OF CONTENTS Particulars Page
SECTION I: STATUTORY CONDITIONS 07-12
Disclosure in respect of issuance of security in demat form 07 Conditions under 2CC of the Securities and Exchange Ordinance, 1969 07 General Information 12
SECTION II: DECLARATIONS AND DUE DILIGENCE CERTIFICATES 13-16
Declaration about the responsibility of the Director(s), including the CEO of the Company Envoy Textiles Limited in respect of the Prospectus
13
Consent of Director (s) to serve as Director(s) 14 Declaration about filing of Prospectus with the Registrar of Joint Stock Companies & Firms 14 Declaration by the issuer about the approval from Securities and Exchange Commission for any material changes
14
Declaration by the Issue Managers about the approval from Securities and Exchange Commission for any material changes
15
Due Diligence Certificate of the Managers to the Issue 15 Due Diligence Certificate of the Underwriter(s) 16
SECTION III: RISK FACTORS AND MANAGEMENTS PERCEPTION ABOUT THE RISKS 17-19
SECTION IV: ISSUE SIZE & PURPOSE OF THE PUBLIC OFFERING 20-21
Financial Structure of the Company 20 Use of IPO Proceeds 20
SECTION V: INFORMATION ABOUT THE COMPANY 22-29
Company Profile - Envoy Textiles Limited 22 Nature of Business 22 Principle Products and Services 23 Products/Services that account for more than 10% of the Companys total revenue 23 Associates, Subsidiary/Related Holding Company and their core areas of business 23 Distribution of Products/Services 23 Competitive Condition of Business 24 Sources and availability of Raw Materials and Principal Suppliers 27 Sources of and requirement for Power, Gas and Water or any other utilities 28 Customer Providing 10% or more Revenues 28 Description of Contract with Principal Suppliers/Customers 28 Description of any Material Patents, Trademarks, Licenses or Royalty Agreements 28 Number of Employees 29 Production/Service Rendering Capacity and Current Utilization 29
SECTION VI: DESCRIPTION OF PROPERTY 30-32
Location of the Principal Plants and other Property of the Company and their condition 30
SECTION VII: PLAN OF OPERATION AND DISCUSSION OF FINANCIAL CONDITION 33-40 Internal and External Sources of Cash 33 Material commitments for Capital Expenditure 33
Prospectus | 4
ENVOY TEXTILES LIMITED
Particulars Page Causes for Material Changes from period to period 33 Seasonal aspects of the Companys business 34 Known trends, events or uncertainties 34 Change in the assets of the Company used to pay-off liabilities 35 Loan taken from or given to Holding/Parent Company or subsidiary Company 35 Future Contractual Liabilities 35 Future Capital Expenditure 35 Vat, Income Tax, Customs duty or other tax liability 36 Operating Lease Agreements during the last five years 36 Financial lease commitments during the last five years 36 Personnel related Scheme 36 Breakdown of estimated expenses for IPO 37 Revaluation of Companys assets 38 Transaction between Subsidiary/Associate/Holding Company and the Issuer 39 Auditors Certificate regarding any allotment of shares to the directors and subscribers to the Memorandum of Association and Articles of Association for any consideration otherwise than for cash
40
Declaration regarding Suppression of Material Information 40
SECTION VIII: INFORMATION ABOUT DIRECTORS AND OFFICERS 41-54 Directors of the Company 41 Information regarding Directors and Directorship 41 Directors Involvement with other Organizations 41 Family relationship among Directors