Apr 05, 2011 (LBO) – Textured Jersey Lanka, a Hong Kong-Sri Lanka joint venture textile firm said it raised 1.74 billion rupees (15.8 million US dollars) through a private placement of shares ahead of a public offer. The joint venture partners, Hong Kong listed Pacific Textile Holdings and Sri Lanka’s Brandix, a private firm, said they sold down a 20 percent stake to selected new shareholders who had to buy a minimum of 50 million rupees of shares.
The issue was “comfortably oversubscribed” by the investors who were offered the stock, the firm said in a statement without elaborating.
A 10 percent stake will be offered through a public offering after getting Colombo Stock Exchange approval at the same price as the private placement, the firm said. It will raise 1.2 billion rupees.
The firm can knit, dye and finish 2.5 million metres of fabric a month at its facilities in Avissawella in Sri Lanka.
By end March 2010 the firm had made profits of 5.0 million dollars with net profits rising 22 percent a year for the past five years, the firm said. Textured Jersey makes knitted fabrics for lingerie and sportswear industries. Amongst its largest clients are Victoria’s Secret, Marks & Spencer and Intimis