Sri Lanka Textile Firm to Raise $26.3mn by Private Placement and IPO. Textured Jersey Owned by Brandix & Pacific Textiles Palns to Sell a Stake

19th March 2011, www.lankabusinessonline.com

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 market, which is growing strongly even after the end of the GSP+ concessions in August 2010…," Ashroff Omar, chief executive of Brandix Lanka said.

He said funds from the equity would be used for future growth. CT Capital (Pvt) Ltd and Acuity Partners (Private) Limited would be advisers and manages to the issue.

The statement said Hong Kong listed Pacific Textiles' plants in China have an annual capacity 87 million kilograms. Revenues rose 21 percent for the six months to September 30 from a year earlier to 472 million US dollars. Profits rose 17 percent to 58 million US dollars.

Brandix has 32 plants in Sri Lanka employing 30,000 people and claims top spot in apparel exports. It also has facilities outside the country.

The group works with Victoria’s Secret, PINK, Gap, Banana Republic, Marks & Spencer, Lands’ End, Tommy Hilfiger, Hanes, Express, H&M, Intimissimi and Tesco.

It makes casual bottoms, underwear, lounge and sleepwear, bras, textiles, knitted and woven fabrics, sewing and embroidery thread, accessories and hangers, and also offers wet processing and finishing and fabric printing.

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