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Bulgaria’s Fashion Supply IPO fails

SOFIA (Bulgaria), July 20 (SeeNews) – IPO of the Bulgarian ready-to-wear manufacturer Fashion Supply [BUL:FSN1] on the Bulgarian Business Accelerator Market (BEAM) on the Sofia Stock Exchange failed as investors subscribed for only 1.85% of the shares on offer on Wednesday, according to data from the exchange.

As many as 12,068 shares were subscribed for at 6.50 lev each, according to data from the exchange.

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The company had to place at least 500,000 shares for the offer to be declared successful. The subscription started on July 13.

Fashion Supply offered up to 651,000 new, ordinary and freely transferable shares of 1 lev in nominal value each, aiming to raise 4.23 million levs (2.16 million dollars / 2.2 million euros), according to an earlier statement from the company.

Fashion Supply was seeking additional capital in order to increase its production capacity by investing in modernization of machinery and warehouse infrastructure, with 60% of planned investments in new production facilities targeted by the end of 2022, according to IPO documents released last week by investment manager MK Brokers. .

Based in Blagoevgrad, in southwestern Bulgaria, the clothing manufacturer has been operating in the European market for ten years, focusing on the Dutch and UK markets. The business has been negatively affected by the COVID-19 pandemic.

In the first quarter of 2022, Fashion Supply recorded revenues of around 1.8 million levs compared to 1.53 million levs a year earlier. Net profit, however, fell to 33,000 levs from 53,000 levs on an 18.6% annual increase in expenses, according to an interim financial statement released by the bookrunner.

(1 euro = 1.9556 Bulgarian lev)