Taufika, eGeeration, Lub-rref to raise Tk 1.95b through IPOs this month

Three companies - Taufika Foods & Agro Industries, eGeneration and Lub-rref (Bangladesh) - will raise a total of Tk 1.95 billion from the capital market through IPOs in January.

The initial public offering (IPO) subscription of Taufika Foods, which produces ice cream under the brand name of 'Lovello', will open today (Sunday). The ice cream maker will raise Tk 300 million under the fixed price method.

IPO subscription of eGeneration, one of the leading IT consulting and software solutions companies in Bangladesh, is set to open on January 12, which will raise Tk 150 million under the fixed price method.

The IPO subscription of Lub-rref, a local lubricant manufacturer, will open January 26, aiming to raise Tk 1.50 billion under the book-building method.

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 initial public offering.

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), 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.

eGeneration: IPO subscription of eGeneration will be continued until January 18 which will raise Tk 150 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 44.69 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 IPO.

The company will issue 15 million ordinary shares with an offer price of Tk 10 each using the fixed price method.

IPO proceeds will be utilised for purchasing commercial space, repay bank loans along with conducting development work for digital healthcare platforms and catering IPO expenses.

According to 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 EPS was Tk 1.82. NRB Equity Management is working as the issue manager of the company's IPO.

Lub-rref (Bangladesh): The subscription of company, whose products are branded as BNO Lubricants, will be continued until February 1.

The regulator approved the company's IPO proposal on November 18, 2020.

Earlier the company completed electronic bidding and explored its cut-off price of shares - a requirement for going public under the book building method.

The cut-off price of Lub-rref shares had been fixed at Tk 30 each through bidding by eligible investors held between October 12 and October 15.

The lubricant company will issue a total of 45.24 million ordinary shares, of which 22.62 million shares are reserved for eligible investors (EIs) at their own bid price.

Remaining 22.62 million shares will be opened for general investors, including non-resident Bangladeshis, at a 10 per cent discount on the cut-off price, meaning the general investors will get IPO shares at Tk 27 each.

A market lot consists of 200 shares and resident Bangladeshi investor needs Tk 5,400 to apply for per lot of the company's IPO shares.

Foreign currency required for non-resident Bangladeshi (NRB) and foreign applicants, (per lot) of US$ 64.14 or GBP 47.40 or EUR 52.78.

The IPO proceeds will be used for expanding its existing refinery plat with an aim to meet the growing demand for lubricants from both home and abroad and repay some expensive bank loans.

As per the financial statement for the year ended on June 30, 2019, the company's net asset value per share was Tk 31.93 (with revaluation reserve) and Tk 25.96 (without revaluation reserve). For the same period, its earnings per share (EPS) stood at Tk 2.08.

The weighted average EPS stood at Tk 2.23 based on the company's financials of last five years.

NRB Equity Management is working as the issue manager to company's IPO process.

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