Shoeniverse Footwear plans to raise Tk100cr through IPO

Export-oriented synthetic footwear manufacturer Shoeniverse Footwear Limited is planning to raise Tk100 crore from the Dhaka Stock Exchange through an initial public offering (IPO).

To facilitate the process, the company has signed an issue management agreement with LankaBangla Investments PLC. The agreement was recently signed by Shoeniverse Footwear Managing Director Riad Mahmud and LankaBangla Investments Chief Executive Officer Iftekhar Alam at a ceremony.

Established in 2017 as a concern of the NPOLY Group, Shoeniverse Footwear currently manufactures a wide range of synthetic footwear for international markets from its modern production facility in Mymensingh. The factory spans around 231,718 square feet and employs more than 2,700 workers.

The company produces around 350,000 pairs of shoes per month, with an annual turnover of approximately Tk327 crore.

Shoeniverse Footwear places strong emphasis on environmentally friendly production practices. Its facility is equipped with an effluent treatment plant (ETP) for waste management. It also provides workers with a medical centre, daycare facilities, training centre and canteen.

The factory is supported by fire detection and firefighting systems, CCTV surveillance and round-the-clock security. The company also operates an in-house product development centre to meet international buyers' requirements and support new product innovation.

Managing Director Riad Mahmud told The Business Standard that rising global demand for its products has prompted the company to expand production capacity and scale up operations. He said the IPO is a strategic step to secure long-term financing for this expansion.

He further noted that the company is planning to expand exports to advanced markets, including the United States. Maintaining international standards and ensuring global compliance are key priorities in this strategy.

As part of its current plan, the company is implementing a major capacity expansion programme aimed at capturing growing global demand in the footwear sector and strengthening its export capability.

LankaBangla Investments PLC is one of the leading investment banks in the country, providing services including IPO management, corporate advisory, capital raising, mergers and acquisitions, transaction advisory, and asset management. The firm has acted as issue manager for several IPOs and major corporate transactions in Bangladesh.

Subject to approval from the Bangladesh Securities and Exchange Commission (BSEC), the funds raised through the IPO will be used to support the company's expansion plans. Shoeniverse Footwear aims to strengthen its position in Bangladesh's fast-growing export-oriented footwear industry and enhance its competitiveness in global markets.