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Lovello Ice Cream IPO subscription begins Jan 3

Published : Thursday, 3 December, 2020 at 12:00 AM  Count : 134
Business Correspondent

The IPO subscription of Lovello Ice Cream, an ice cream brand of Taufika Foods and Agro Industries, is set to float initial public offering (IPO) on January 3 to raise Tk 300 million from the stock market.
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.

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