July 20 (SeeNews) - The initial public offering (IPO) of Bulgarian ready-to-wear clothing maker Fashion Supply [BUL:FSN1] on the Bulgarian Enterprise Accelerator Market (BEAM) of the Sofia bourse was unsuccessful as investors subscribed for just 1.85% of the shares on offer by Wednesday, bourse data showed.
As many as 12,068 shares were subscribed for at 6.50 levs apiece, according to bourse data.
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The company needed to place at least 500,000 shares for the offering to be declared successful. Subscription began on July 13.
Fashion Supply offered up to 651,000 new, ordinary and freely transferable shares of 1 lev in par value each, targeting to raise 4.23 million levs ($2.16 million/2.2 million euro), according to an earlier company statement.
Fashion Supply was seeking additional capital so as to expand production capacity by investing in machinery and warehouse infrastructure upgrades, with 60% of planned investments in new production facilities targeted by the end of 2022, according to IPO documents published last week by investment manager MK Brokers.
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. The company was negatively affected by the COVID-19 pandemic.
In the first quarter of 2022, Fashion Supply booked revenue of some 1.8 million levs compared to 1.53 million levs a year earlier. Net profit, however, shrank to 33,000 levs from 53,000 levs on an 18.6% annual rise in expenses, according to an interim financial statement published by the bookrunner.
(1 euro = 1.9556 Bulgarian levs)