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Tuesday, June 21, 2011

Sri Lanka Textured Jersey to expand fabric production

June 20, 2011 (LBO) - Sri Lankan fabric supplier Textured Jersey Lanka plans to use funds raised through a private placement and a forthcoming public offer to expand production and buy modern machinery to improve efficiency.

The joint venture between Pacific Textured Jersey Holdings, a fully owned subsidiary of Hong Kong's Pacific Textiles Holdings, and Brandix Lanka, has been granted approval by the Colombo bourse for a listing on its Main Board.

The subscription list for the IPO will open on July 07, 2011 and applications will be accepted from June 27, 2011, a statement said.

"The listing would enable the company to take advantage of potential growth opportunities in both Sri Lanka and the South Asian region, and also provide a separate independent platform to raise funds from capital markets to support its future growth aspirations.

"The company remains confident in mitigating the challenge posed by the recent volatility in cotton prices, given its ability to pass on these industry generic costs, and with commodity prices also having recently declined," it said.

Textured Jersey said it made a net profit of 6.1 million US dollars (684.7 million rupees) in the year ended March 31, 2011 on revenues of 83.2 million dollars (9,284.6 million rupees).

Textured Jersey supplies weft-knitted and dyed stretch fabrics to apparel manufacturers throughout Asia and end-chain retailers such as Marks & Spencer, Victoria’s Secret and Intimissimi.

The company is issuing a 12.21 percent stake or 80,000,000 new ordinary voting shares at a price of 15 rupees each.

Both Pacific Textiles and Brandix Lanka completed a placement of a total of 116,000,000 shares, also at 15 rupees each, which amounts to 17.71 percent of the company after the IPO to qualified investors before the IPO as a private sell down in May 2011.

Subsequent to the IPO, Pacific Textiles, through its wholly owned subsidiary Pacific Textured Jersey Holdings, and Brandix Lanka, will collectively hold 70.08 percent of the total issued shares of the company.

source - www.lbo.lk