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Islam Oxygen, an oxygen manufacturer and supplier, held its IPO road show for eligible investors as the company plans to go public using the book building method.
The company wants to raise Tk 930 million from the capital market for its business expansion subject to approval from the Bangladesh Securities and Exchange Commission (BSEC).
A road show is a requirement under the book building regulations before price discovery.
The road show was held at Radisson Blu Water Garden in the capital on Monday evening, where eligible institutional investors got detailed information about various aspects of the company.
Chairman of the Islam Oxygen Ltd Md Shahidul Islam, Managing Director, Md Nurul Islam, representatives of BSEC, Dhaka Stock Exchange and Chittagong Stock Exchange, issue managers and eligible investors were present, among others at the event.
The company planned to spend the IPO proceeds for setting up a new factory building, plants and machinery.
Nurul Islam, managing director of the company, explained details information about various aspects of the company at the road show.
"With the money raised from the market through IPO, we will set up a liquid gas plant and a new factory building. If the plant is set up, we will hope to able to meet the country's demand for oxygen and other gases to a large extent," he said.
He informed that with the setting up of the new plant, the current production capacity will be increased from 25 million cubic meters to about 45 million cubic meters.
"We will be able to meet the market demand of Bangladesh and then export to other countries in near future," he said.
He expects that the company's revenue will be Tk 2.70 billion in 2025.
"Now it is the best time to invest in Islam Oxygen and we believe, we will be able to give our shareholders the right returns and start our next milestone in the capital market," he added.
The company will spend Tk 907 million on the expansion. According to the spending breakdown, Tk 871.5 million will be used for buying new capital machinery and Tk 35.5 million on the construction of sheds for generators and a new plant.
The company's earnings per share were Tk 4.37 for the fiscal year (FY) 2020-21, which was Tk 2.77 in the previous year. The net asset value per share with revaluation stood at Tk 38.37 and without revaluation at Tk 25.09 during the period under review.
Started commercial production in 2013, the company is engaged in manufacturing and supplying medical, industrial, and laboratory gases. Its manufacturing plant is located at Tarabo in Narayangonj.