72

It is illegal to reproduce this material in any format without prior 

written approval of LankaBangla Securities Limited.

Company Snapshot  

Established in

2003

Started commercial operation in

2005

Paid-up Capital - Before IPO (BDT mn)

851.50

Capital issued as IPO (BDT mn)

150.00

Paid-up Capital - Post IPO (BDT mn)

1001.50

Total No. of Securities - Post IPO (mn)

100.15

Free Float (Estimated)

46.7%

Face Value per share (BDT)

10

Category

N

Sector

Textile

Year end

June

Issue Manager

Alpha Capital Management Limited

Source: LBSL Research and Company Prospectus

Plan for IPO Proceed Utilization  

Particulars

BDT mn% of total issue

Construction of automatic warehouse system

74.64

49.8%

Acquisition and installation of new machineries

56.01

37.3%

Partial loan repayment

6.34

4.2%

IPO Expenses

13.00

8.7%

Total

150.00

100.0%

Source: LBSL Research and Company Prospectus 

QUEEN SOUTH TEXTILE MILLS LIMITED 
(QSTML) 

Company Overview

Queen South Textile Mills Limited (QSTML) is a 100% export 
oriented yarn dyeing industry located in Dhaka Export Processing 
Zone, Savar. The company is engaged in dyeing of different counts 
of Cotton, Polyester, Viscose, Acrylic,  Nylon  and  Blended yarn  
to market the  processed yarn as deemed exporter. The company 
was incorporated in 2003 and started operation in mid-2005. 
QSTML’s production machineries are equipped with the state of 
the art technology, including Central Controlling and Monitoring 
System, a laboratory which is equipped with computer matching 
machine and dispensing machines, monitored by qualified expert 
technicians.  

IPO Proceeds Plan of Queen South Textile Mills Limited

QSTML has issued 15,000,000 shares at BDT 10 to raise BDT 
150mn through Initial Public Offering (IPO). The proceedings 
will be primarily used to procure plant and machineries for BDT 
74.64mn (49.8% of total proceeds). BDT 56.01mn (37.3% of IPO 
proceeds) will be used for acquisition and installation of new 
machineries for modernization of the existing factory unit and  
BDT 6.34mn (4.2% of IPO proceeds) of the fund will be used 
for partial loan repayment. Rest of the funds (BDT 13.00mn) will 
cover IPO expenses.

Lock-in Provisions

 Out of 100.15 million shares, 7.50 million shares (7.5% 

shares allocated to general public) will have no lock-in and 
they will be available for trading on 13 March, 2018.

 53.31 million shares (53.2% shares allocated to Sponsors 

and Directors ) will become free from lock-in on December 
10, 2020. 

 1.87 million shares (25% of the 7.5% shares allocated to the 

Eligible Investors) will become free from lock-in on June 
10, 2018. 

 1.87 million shares (other 25% of the 7.5% shares allocated 

to Eligible Investors) will become free from lock-in on 
September 10, 2018.

 

31.84 million shares (31.8% shares allocated to shareholders 
other than sponsors, directors and EI) will become free from 
lock-in on December 10, 2018

QSTML has issued 15,000,000 shares at BDT 

10 to raise BDT 150mn through Initial Public 

Offering (IPO). The proceedings will be primarily 

used to procure plant and machineries for BDT 

74.64mn (49.8% of total proceeds). 

COMPANY IN FOCUS

Source: LBSL Research and Company Prospectus 

Shareholding Pattern (Post IPO

Director or Sponsors

(Individual) 23%

General Public 7%

Director or Sponsors

(Institutions) 30%

Shareholders Other

Than Director

or Sponsor 32%

Eligible Investors

(Mutual Funds) 2%

Eligible Investors

 (Other EIS) 6%