The initial public offering (IPO) subscriptions of two companies - Taufika Foods& Agro Industries and eGeneration - will open next month to raise Tk 450 million under the fixed price method.
Taufika Foods, which produces ice cream under the brand name -'Lovello', will commence on January 3, while eGeneration, anIT consulting? and software solutions company, is set to open on January 12, 2021, according the IPO prospectus.
Taufika Foods: The IPO subscription of Taufika Foods will be continued until January 7, which will raise a fund worth Tk 300 million under the fixed price method.
A market lot consists of 500 shares and an investor needs Tk 5,000 to apply for each lot of the company's IPO shares.
Foreign currency required for non-resident Bangladeshi (NRB) and foreign applicants, (per lot) of US$ 59.39 or GBP 44.36 or EUR 49.42.
The stock market regulator -- Bangladesh Securities and Exchange Commission (BSEC)-- approved the company's proposal on October 15 to raise the said amount from the capital market through an initial public offering.
As per the regulatory approval, Taufika Foods will issue 30 million ordinary shares with an offer price of Tk 10 each using the fixed price method.
The company will utilise the IPO proceeds for acquisition of plant and machinery (Tk 90.36 million), purchasing freezer (Tk 57.84 million), purchasing vehicles (Tk 20.56 million), for capacity expansion of its depot (Tk 13.27 million), to repay bank loans (Tk 90 million) and bearing the IPO related expenses (Tk 28 million), as per the IPO prospectus.
Banco Finance and Investment and Sandhani Life Finance are jointly working as issue manager of the company's IPO process.
According to the financial statements that ended on September 30, 2019, the company's net asset value (NAV) per share and basic earnings per share were Tk 12.17 and Tk 1.20 respectively.
The company's authorised capital is Tk 1.0 billion and pre-IPO paid-up capital is Tk 550 million.
Taufika Foods and Agro Industries started its commercial operations on 2 January 2016. The company's Lovello brand was launched on 14 February 2016.
Currently, three leading ice cream producers hold about 80 per cent share of the country's Tk 15 billion ice-cream market.
The market share of the Lavello is approximately 15 per cent in the ice cream industry. Igloo and Polar are two established and popular names in the ice cream industry.
eGeneration: IPO subscription of eGeneration will be continued until January 18 which will raise Tk 150 million under the fixed price method.
It is the first software solutions company in the stock market of the country.
A market lot consists of 500 shares and an investor needs Tk 5,000 to apply for each lot of the company's IPO shares.
Foreign currency required for non-resident Bangladeshi (NRB) and foreign applicants, (per lot) of US$ 59.39 or GBP 44.69 or EUR 49.21.
Earlier on October 21, the stock market regulator approved the company's proposal to raise the said amount from the capital market through the initial public offering.
The company will issue 15 million ordinary shares with an offer price of Tk 10 each using the fixed price method.
The company will utilise the IPO proceeds to purchase commercial space, repay bank loans along with conducting development work for digital healthcare platforms, and catering IPO expenses.
According to the financial statement for the year ended on June 30, 2019, the company's net asset value without revaluation stood at Tk 20.56 per share, while the earnings per share was Tk 1.82.
The company's authorised capital is Tk 1.0 billion and pre-IPO paid-up capital is Tk600 million.
NRB Equity Management is working as the issue manager of the company's IPO.
eGeneration started commercial operation in 2003.
