June 17 (SeeNews) - Bulgarian ready-to-wear clothing maker Fashion Supply applied for admission to the Bulgarian Enterprise Accelerator Market, or BEAM, of the Bulgarian Stock Exchange (BSE), pricing its initial public offering (IPO) at 6.50 levs per share, the bourse operator said.
Fashion Supply intends to offer up to 651,000 new, ordinary and freely transferable shares of 1 lev in par value each, the BSE said in a filing on Thursday. The maximum value of the offering would come to some 4.2 million levs ($2.25 million/2.1 million euro).
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Based in Blagoevgrad, southwestern Bulgaria, the garments manufacturer has been operating on the European market for the past ten years, focusing on markets in the Netherlands and the UK, it said in a press release on its website. The company was founded by local entrepreneur and current CEO Dimitar Stoykov, who also set up water bottling company Rilana and Can Supply, an industrial plant for canned beverages.
Fashion Supply, which offers specialist designer collections, has partnered with sector players such as MS Mode, The Sting, Cotton Club, Miss Etam and Terranova.
The funds from the offering will be used mainly to obtain a new digital printing system for textile, upgrade the manufacturing and warehouse infrastructure and launch the company's own brand, with a view to expanding operations at home and in Europe.
"The growing demand for garments with non-standard sizes across Europe, met by our flexible business model, guarantees fast and low-cost supplies, gives us an additional assurance that we can move on to the next level. We will expand the business with our brand and add several innovative solutions, including a new digital printing technology and a transition to sustainable energy with a photovoltaic installation," Stoykov said in the statement.
Fashion Supply saw significant growth in revenue until the end of 2019, but was negatively affected by the COVID-19 pandemic although it managed to withstand the financial strain on the global industry and keep its financials in the black. The company expects to return to a pre-COVID level of performance in the first half of 2022.
MK Brokers will act as the lead investment manager for the offering.
(1 euro = 1.95583 levs)