The initial public offering (IPO) lottery draw of Taufika Foods & Agro Industries, which produces ice cream under the brand name of ‘Lovello’, to be held tomorrow (Tuesday).
The event will begin at 11:00 am at The Lakeshore Hotel at Gulshan in Dhaka, according to an official disclosure posted on the Chittagong Stock Exchange (CSE) website on Sunday.
The company’s IPO was oversubscribed by 24.53 times as Tk 7.36 billion was received against the public issue of IPO shares of Tk 300 million, according to the final status of the subscription.
Of the total subscription, the company received from resident Bangladeshi about Tk 5.19 billion, affected small investors Tk 463 million, non-resident Bangladeshi Tk 199 million, eligible investors (mutual funds & collective investment scheme) nearly Tk 221 million and eligible investors (other than mutual funds) Tk 1.27 billion.
After the IPO lottery draw, the result will be published on the websites of the company, issue manager, Dhaka Stock Exchange and Chittagong Stock Exchange.
The ice cream maker raised Tk 300 million from the capital market under the fixed price method by issuing 30 million ordinary shares.
IPO subscription of the company was held between January 3 and January 7. A market lot consists of 500 shares.
The stock market regulator — Bangladesh Securities and Exchange Commission (BSEC) — approved the company’s proposal on October 15, 2020 to raise the said amount from the capital market through IPO.
The company will utilise the IPO proceeds for acquisition of plant and machinery (Tk 90.36 million), purchasing freezer (Tk 57.84 million), vehicles (Tk 20.56 million), capacity expansion of its depot (Tk 13.27 million), 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 managers of the 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.
Its authorised capital is Tk 1.0 billion and pre-IPO paid-up capital is Tk 550 million.
Taufika Foods & 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 12 billion ice-cream market.
The market share of the Lovello is approximately 15 per cent while 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.