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Tuesday, June 21, 2011

Textured Jersey in IPO to raise Rs. 1.2bn

Textured Jersey Lanka Ltd, a joint venture between Pacific Textiles Holdings Limited of Hong Kong and Sri Lanka’s Brandix Lanka Limited, is planning to raise Rs. 1.2 billion from the capital market and received the approval of the Colombo Stock Exchange (CSE) to list 80 million ordinary shares on the main board of the exchange.

The initial public offer of the 80 million shares, a 30 percent stake, is priced at Rs. 15 per share and the subscription list would open on July 7, 2011, the CSE said on Monday (20) announcing its approval of the listing.

Pacific Textiles a 60 percent stake in Textured Jersey and the balance 40 percent is being held by Brandix Lanka. "Post-listing it is expected that approximately 30 percent of Textured Jersey will be held with the public, with part of the dilution taking place via a pre-IPO placement and the balance through an IPO of new shares. The total transaction value is estimated to be approximately Rs. 2.9 billion," the company said earlier this year.

Textured Jersey had raised Rs. 1.7 billion through the private placement last April.

Textured Jersey possesses a sophisticated production facility manufacturing knitted fabrics for the intimate apparel and sportswear industries and is a major supplier to apparel manufacturers throughout Asia and end-chain retailers. Amongst its largest clients are Victoria’s Secret, Marks & Spencer and Intimissimi.

"Infrastructure at the 650,000 sq. ft. facility in Avissawella enables a capacity to knit, dye and finish up to 2.5 million meters of fabric a month. Despite facing challenges in the form of rising cotton prices, high energy costs and loss of tariff concessions, Textured Jersey has delivered strong financial results during the past five years," the company announced earlier this year.

Joint managers to the IPO are CT Capital (Private) Ltd and Acuity Partners (Private) Ltd. SSP Corporate Services (Private) Ltd are registrars to the issue.

The prospectus will be issued on Monday, June 27, 2011.

source - www.island.lk