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

Courtesy: EFI

Textiles | On 21st Sep 2018

Digital textile printing expected to grow at 20% CAGR

Digital textile printing is at this time about 3-4 per cent of all...

Courtesy:  Vishal Banik on Unsplash

Textiles | On 21st Sep 2018

Pakistan's textile exports up 3.72% in July-August 2018

The value of textile and garment exports from Pakistan increased 3.72 ...

French jute, natural fibre team to visit India, Bangladesh

Textiles | On 21st Sep 2018

French jute, natural fibre team to visit India, Bangladesh

Business France, the French trade and investment commission, will...

Interviews View All

Rashi Menda, Zapyle

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Abhishek Ganguly, Puma India

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Awen Delaval, Samatoa

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Hardik Sanghvi,

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Tejas N Patel, Navin D Patel,

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Larry L Kinn, Suominen Corporation

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Mark Brill, Birmingham City University (BCU)

Mark Brill
Birmingham City University (BCU)

<div>A technological breakthrough could see people getting messages about...

Isabel Herranz, European School of Business & innovation

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

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

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

Leave your Comments


September 2018

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

news category


Related Categories:

Advanced Search