The initial public offering (IPO) subscription of Taufika Foods and Agro Industries, which produces ice cream under the brand name of 'Lovello', will open on January 3, 2021.
The ice cream maker will raise Tk 300 million from the capital market under the fixed price method by issuing 30 million ordinary shares.
The subscription for shares of the company through electronic subscription system will be continued until January 7, according to the company's IPO prospectus published on Wednesday.
The stock market regulator -- Bangladesh Securities and Exchange Commission (BSEC)--approved the company's proposal on October 15 to raise the fund from the capital market through initial public offering.
As per the regulatory approval, the 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 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.
Currently, three leading ice cream producers hold about 80 per cent share of the country's Tk 12 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.
Industry people said the branded ice-cream market size is growing fast due to rising income levels, access to electricity across the country, cold chain and changes in social structure and food habits.
Taufika Foods and Agro Industries started its commercial operations on 2 January 2016. The company's Lovello brand was launched on 14 February 2016.
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