SQ Celsius to go public

SQ Celsius, a concern of SQ Group, a major high-end garment exporter, is going to list on bourses in June, its top official said yesterday.

Ghulam Faruque, chairman and managing director, told The Daily Star, “Raising an amount to the tune of Tk 150 crore from the public is now under plan.” However, the size of the IPO (initial public offering) may go higher as per the company's requirement for its massive expansion, he added.

There are three sweater units under the company.

On settlement of the pre-IPO or private placement by June, the formal share trade will debut in September.

What will be the face value of shares is yet to be decided.

As per the expansion plan, an SQ Station will be set up at Bhaluka in Mymensingh district where everything required for operating production will be available under one roof. The company has already purchased land for the project.

The SQ boss also said an asset management firm is now conducting the company's asset valuation and credit rating will be completed very soon.

SQ Celsius' present paid-up capital is more than Tk 50 crore, while the number of its workers is 7,000. The total number of workers of the entire group is 10,000.

"Moreover, we have a plan to set up an exclusive garment factory to produce underwear garment in the SQ Station as the demand for this specialised product is increasing rapidly among international buyers," Faruque said.

Sri Lanka now does extremely well in this segment of garment products, he pointed out.

SQ Group, established in 1993, with having factories at Mirpur, Bhaluka and Maona, exported apparels worth $70 million in 2009. The growth was not to an expected level because of the global recession.

The group's major buyers are Marks and Spencer, H and M, NEXT and ESPIRIT, Faruque said.

In response to a query, he pointed his finger at the difficulties in bank borrowing at high interest.

“That's why I'm going to take the money from the capital market."

At present, a total of 26 companies in the textile sector are listed with the country's premier bourse, Dhaka Stock Exchange. Of the total scrips in the sector, some under-perform due to their delayed holding of annual general meeting and lapses in awarding dividends to the shareholders for years.