BSEC makes way for Partex Cables to apply for IPO

The Bangladesh Securities and Exchange Commission (BSEC) has enabled Partex Cables to apply for an initial public offering (IPO) by approving its paid-up capital that was raised through cash in over two years.

According to a clause of the Public Issue Rules 2015, a company cannot apply for IPO if it raises paid-up through cash.

But the BSEC has given Partex Cables exemption from that clause, and now, the company can apply for IPO.

Partex Group, one of the largest conglomerates in the country, is hunting for foreign investments for its affiliate company Partex Cables to set up a backward linkage industry that will supply raw materials for manufacturing cables.

It will be the first backward linkage industry for cable manufacturing in the local market. 

Backward linkages refer to the relationship of an industry or institution with its supply chain, meaning what other products have contributed to making or producing one particular product.

In the case of cable production, the main raw materials are copper, rubber, aluminum, thermoplastics, etc. These raw materials will be processed in the backward linkage industry of Partex.

The business group is currently in talks with some Japanese investors, who will provide technical assistance to Partex Cables to process the raw materials of cables.

As part of this plan, the company will be listed on the stock market to enable foreign investors to evaluate the company before making investments.

Partex Cables, a leading manufacturer in the cable industry, plans to raise Tk30 crore in the fixed price method by issuing 3 crore shares at face value.

The company, established in 2016, wants to use the initial public offering (IPO) fund for working capital and BMRE [Balancing, Modernisation, Rehabilitation, and Expansion].

The cable maker achieved revenues of around Tk300 crore in the last fiscal year, while it made a net profit of 10% in revenue.

CBC Capital and Equity Management Limited will act as the collaborative investor of the company. The firm has already signed an agreement with AAA Finance and Investment Ltd for processing the issue.

Partex Star Group is one of the largest diversified private sector enterprises in the country. The group started its journey in 1962.

The group owns and operates 20 manufacturing, service, and trading concerns, delivering the best values to customers through its products and services.