Malek Spinning to Establish Petrochemical Complex

The IPO lottery of Malek Spinning Mills Ltd. was held Tuesday in the city amidst huge and unprecedented participation from investors.

A total of 80,000 applicants won the lotteries against 1.50 million applicants..

The IPO subscription of Tk 1.0 billion has fetched a huge sum of Tk 16.31 billion which is 16.31 times higher than the IPO amount.

Company sources said the refund warrants will be distributed from July 10.

"It is the highest IPO over-subscription record in textile sector in Bangladesh," said Azizur R Chowdhury, Director, Malek Spinning Mills Ltd.

A Matin Chowdhury, Managing Director of the company said Malek Spinning will utilise the proceeds from the IPO to establish a PetroChemical Complex, which will be the first of its kind in Bangladesh producing Bottle Grade PET resin and Textile Grade Chips along with Polyester Fiber.

"This will result in import substitution which will translate into significant savings of foreign currency as well as stimulating tremendous growth in the polyester manufacturing industry", Mr Matin added.

Moshiur Rahman, Director of the company stated that MSM is one of the leading spinning mills in Bangladesh and one of the very few spinning mills which has a turnover of above Tk 3.0 billion per annum.

MSM is a cotton USA licensee equipped with state-of-the-art machinery producing yarn used in the export market and is one of the only two factories in Bangladesh which has been awarded the USTERIZED certificate by the Uster Technologies, Switzerland.

B.K Chaki, DGM, Accounts & Finance said, starting with a capacity of 6,000 spindles and annual sales of Tk 95 million, MSM now has a capacity of 63,624 spindles along with an open-end capacity of 40 tons daily with a projected annual sale of approximately Tk 3.88 billion per annum, a staggering growth rate of 40 times in 21 years.

In his welcome address, the MD expressed gratitude to the investors and thanked the regulators, Issue Managers and Post Issue Managers for their guidance and support in taking the process forward smoothly.