In a pivotal move for Bangladesh's capital market, the Bangladesh Securities and Exchange Commission (BSEC) has approved the Initial Qualified Investor Offer (IQIO) of Royal Footwear PLC. This decision, made during the 1020th commission meeting, signifies the first such approval under the new leadership of Chairman Masud Khan.
Royal Footwear PLC, a 100% export-oriented footwear manufacturer, plans to raise Tk 12 crore (120 million) by issuing 1.2 crore ordinary shares at a face value of Tk 10 each. The funds raised will be used for repaying bank loans, purchasing spare parts and raw materials, and covering the expenses of the IQIO process.
The company, known for supplying products to international clients including the US-based ROSS, aims to strengthen its financial footing with this offering. According to its audited financial report ending December 31, 2025, the company's Net Asset Value (NAV) with revaluation was Tk 27.54, while the NAV without revaluation stood at Tk 15.74. Its half-yearly Earnings Per Share (EPS) was recorded at Tk 0.82.
Prime Bank Investment PLC is acting as the issue manager for this offering. The BSEC's approval of the IQIO is part of broader efforts to modernize the capital market, including the introduction of 'Script Netting' or 'Intraday Trading', subject to necessary technical arrangements by the stock exchanges.
Additionally, the commission has approved a draft amendment to the Bangladesh Securities and Exchange Commission (Margin) Rules, 2025, which will be published for public opinion. The BSEC also consented to the liquidation of the Vanguard AML BD Finance Mutual Fund One following its 10-year tenure and a formal application from its trustee, Bangladesh General Insurance Company PLC.
