The Bangladesh Securities and Exchange Commission (BSEC) has enabled Partex Cables to file for an initial public offering (IPO) by approving its paid-up capital, raised through cash over two years.
Under a clause in the Public Issue Rules 2015, a company cannot apply for an IPO if it is paid up by cash contributions.
But the BSEC exempted Partex Cables from this clause and now the company can apply for an IPO.
Partex Group, one of the country’s largest conglomerates, is seeking foreign investment for its subsidiary Partex Cables to build a reverse link industry that will provide raw materials for the manufacture of cables.
It will be the first reverse link cable manufacturing industry in the local market.
Backlinking refers to an industry or institution’s relationship to its supply chain, i.e. what other products contributed to the manufacture or production of a particular product.
In cable manufacturing, the main raw materials are copper, rubber, aluminum, thermoplastics, etc. These raw materials are processed in Partex’s feedback industry.
The group is currently in talks with some Japanese investors who will provide technical support to Partex Cables in processing the cable raw materials.
Under this plan, the company will be listed on the stock exchange so that foreign investors can evaluate the company before investing.
Partex Cables, a leading manufacturer in the cable industry, plans to raise Tk30 crore in a fixed price manner by issuing 3 crore shares at par.
Founded in 2016, the company plans to use the IPO fund for working capital and BMRE [Balancing, Modernisation, Rehabilitation, and Expansion].
The cable maker generated sales of around Tk300 crore in the last financial year while posting a net profit of 10% of sales.
CBC Capital and Equity Management Limited will act as joint investor in the Company. The company has already signed an agreement with AAA Finance and Investment Ltd to process the issue.
Partex Star Group is one of the largest diversified private companies in the country. The group began their journey in 1962.
The group owns and operates 20 manufacturing, service and trading companies and provides customers with the best values through its products and services.
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