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Taufika Foods to make debut Wednesday

| Updated: February 11, 2021 09:00:11


Representational image Representational image

Taufika Foods & Agro Industries, which produces ice cream under the brand name “Lovello”, will make its share trading debut on bourses on Wednesday under “N” category, officials said.

The Dhaka Stock Exchange (DSE) trading code for Taufika Foods is “TAUFIKA” and DSE company code is 14296 while the Chittagong Stock Exchange (CSE) scrip ID is 14028 and scrip code is “TAUFIKA”.

Taufika Foods, which raised Tk 300 million from the capital market under the fixed price method, received approval from the Bangladesh Securities and Exchange Commission (BSEC) on October 15, 2020.

The ice-cream producer offloaded 30 million ordinary shares with an offer price of Tk 10 each using the fixed price method. Its initial public offering (IPO) subscription was held between January 3 and January 7 this year.

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.

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 market share of the country’s Tk 12 billion ice-cream business.

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.

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