Home / Knowledge / News / Textiles / Prolexus heads for Vietnam to leverage TPP
Prolexus heads for Vietnam to leverage TPP
16
Dec '15
Malaysian apparel major Prolexus Bhd is making a cash call to raise up to 62.53 million ringgit ($14.5 million) in order to set up a garment factory in Vietnam to cash in on the Trans Pacific Partnership Agreement (TPP). It also wants to set up a fabric mill in Johor to expand into upstream garment production, the media in Malaysia has reported.

In a filing with Bursa Malaysia, the garments and children's apparels manufacturer said the proposed rights issue entails the issuance of up to 62.53 million shares, with a similar number of warrants.
The issuance will be on the basis of one rights share and one warrant for every two existing Prolexus shares held on an entitlement date to be fixed later, it said.

Based on the indicative issue price of one ringgit per right shares and one ringgit for exercise price for each warrants, Prolexus expects to raise a gross proceeds of between RM55.5 million($12.9 million) and RM62.5 million ($14.5 million) from the corporate exercise.

Of the proceeds, 22 million ringgit ($5.1 million) has been earmarked for the Vietnam factory (land acquisition cost, however, will be paid with internal funds) while between 31.85million ringgit ($7.4 million) and 38.93 million ringgit ($9 million) will be for the fabric mill.

Prolexus anticipates the construction of the new factory to commence in 2016. It will be completed and be fully commissioned by 2017, with an initial production capacity of about 4.5 million pieces annually.

Prolexus said the plant, to be constructed near the Tien Giang province in Vietnam, was part of its strategy to capitalise on the various benefits expected under the Trans-Pacific Partnership Agreement (TPP).

Vietnam had also recently signed an FTA with the European Union, which is expected to spur further growth in its export market to the region especially on the garment and textiles related products. Prolexus expects to grow its exports to the European Union by setting up a plant in Vietnam.

Prolexus also intends to use between 57.4 per cent to 62.3 per cent of the funding proceeds to set up a new fabric mill in Kluang, Johor, to expand into upstream garment production, which would complement its existing core business of apparels manufacturing.

The management expects the fabric mill, to be built on 11.2 ha in Kluang, Johor, to have an estimated annual production capacity of about 15.0 million yards. (SH)

 

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 19th Jan 2017

Pakistan imposes duty on Indian fine cotton yarn

A provisional countervailing duty ranging from Rs 26.89 to Rs 55.8 a...

Textiles | On 19th Jan 2017

Union Budget: Textile sector expects excise duty revisions

Excise duty on man-made fibres should be reduced to bring it on par...

Union textiles minister Smriti Irani at the inauguration of IIGF in New Delhi with textiles secretary Rashmi Verma and other dignitaries. Courtesy: PIB

Apparel/Garments | On 19th Jan 2017

Ministry to reimburse apparel exporters for state levies

The textile ministry has received a sum of Rs 500 crore from the...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search