July 19 (SeeNews) - Bulgarian ready-to-wear clothing company Fashion Supply is aiming to grow net sales by an annual 22% to 11 million levs in 2023, the company said ahead of its initial public offering (IPO) set to take place on July 20.
The targeted IPO proceeds of 4.23 million levs ($2.2 million/2.16 million euro) will be used to increase production capacity by expanding and upgrading machinery and warehouse infrastructure, with planned investments in new production facilities to be about 60% completed by the end of 2022, according to IPO documents published last week by investment manager MK Brokers.
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Planned investments into a proprietary solar photovoltaic (PV) installation will remain to be made beyond the current year. Fashion Supply will also invest into developing its brand, earmarking operating expenses of 150,000 levs for that purpose. Full production capacity is estimated to be reached in 2025.
The IPO, which was launched on July 13, will be considered successful if the company places at least 500,000 new, ordinary and freely transferable shares of 1 lev in par value each, Fashion Supply said in a statement last week.
The offering, which is priced at 6.50 levs, is for up to 651,000 new shares. Secondary trading in shares is expected to start about a month after the IPO closes.
In 2021, Fashion Supply grew its after-tax profit by an annual 9.3% to 258,000 levs, the company's annual report published by MK Brokers shows. Operating expenses went down to 6.8 million levs from 7.4 million levs in 2020. Net revenue from sales decreased to 6.7 million levs from 7.3 million levs in the same period.
Fashion Supply will list on the Bulgarian Enterprise Accelerator Market (BEAM) of the Bulgarian Stock Exchange (BSE).
(1 euro = 1.95583 levs)