Sri Lanka textile firm to raise US$26.3mn in equity

Mar 19, 2011 (LBO) - Sri Lanka's Textured Jersey, a textile make owned by Brandix Lanka Ltd and Pacific Textiles of Hong Kong said it is planning to raise 2.9 billion rupees (26.3 million US dollars) through a private placement and initial public offering. Pacific Textiles now owns 60 percent of the firm and Brandix Lanka 40 percent, the company said in a statement.

Textured Jersey is planning to sell a 30 percent stake to the public through the placement and IPO.

Textured Jersey said it makes weft-knitted and dyed stretch for Asian apparel makers and retail chains. Among its largest clients are Victoria's Secret, Marks & Spencer and Intimissimi.

"High global cotton prices are an industry-wide headwind at present, but we believe this will facilitate industry consolidation in the longer term, and stronger players will continue to gain market share," chief executive of Pacific Textiles and director Bill Lam, said in a statement.

The firm has a 650,000 square feet factory in Avissawella, Sri Lanka, which can knit, dye and finish up to 2.5 million meters of fabric a month. The firm had annual revenues of about 83 million US dollars an official said. "Knit products constitute the fastest growing segment of the Sri Lankan apparel export ma