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The Financial Express

IPO subscription of Lovello Ice Cream begins Jan 3

| Updated: December 07, 2020 10:46:13


Evaly and Fianancial Express Evaly and Fianancial Express
IPO subscription of Lovello Ice Cream begins Jan 3

The IPO subscription of Lovello Ice Cream, an ice cream brand of Taufika Foods and Agro Industries, is set to open on January 3, 2021, aiming to raise Tk 300 million.

The IPO subscription for shares of the company through electronic subscription system will continue until January 7, according to the company’s IPO prospectus published on Wednesday.

Earlier on October 15, the stock market regulator -- Bangladesh Securities and Exchange Commission (BSEC) -- approved the company’s proposal to raise Tk 300 million from the capital market through the initial public offering.

As per the regulatory approval, 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 the 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).

Banco Finance & Investment and Sandhani Life Finance are jointly working as the 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 out of six companies 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.

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