A dozen firms awaiting to go public for Tk900cr
Applications to Bangladesh Securities and Exchange Commission (BSEC) have been filed to raise IPO funds
Key takeaways:
- 3 firms to raise Tk263cr in book building
- 7 to raise Tk612cr in fixed price
- 3 to raise Tk21cr from SME
- 4 insurers will raise Tk67cr
- Firms will raise capital to meet growing demand
A dozen firms want to raise Tk900 crore from the capital market through public offering to expand their business after rebounding from the Covid-19 pandemic shocks.
Six firms have applied to the Bangladesh Securities and Exchange Commission (BSEC) recently, while others filed applications earlier.
Three firms plan to raise Tk263 crore in book building systems, while seven others want to raise Tk612 crore by fixed price methods including four insurers.
Islami Commercial Insurance wants to raise Tk20.26 crore, Sikder Insurance Tk16 crore, Chartered Life Insurance Tk15 crore, Trust Islami Life Tk16 crore, Midland Bank Tk70 crore, B Brothers Garments Tk50 crore, and Global Islami Bank Tk425 crore.
Insurers want to enter the capital market to comply with the regulatory requirement after getting a waiver from the commission.
Three firms – Islam Oxygen Limited, Asiatic Laboratories Ltd, and Navana Pharmaceuticals Ltd – plan to raise Tk263 crore by book building systems from the capital market.
Islam Oxygen
Islam Oxygen Limited, an oxygen manufacturer and supplier, wants to raise Tk93 crore through a book-building method for its business expansion.
It plans to spend Tk90.70 crore on the expansion – Tk87.15 crore on new capital machinery and Tk3.55 crore on the construction of sheds for generators and a new plant.
The company is engaged in manufacturing and supplying medical, industrial, and laboratory gases. Its manufacturing plant is located in Narayangonj's Taraba area.
According to the audited financial report for fiscal 2020-21, the net profit of the company stood at Tk41.48 crore, which was Tk26.34 crore in fiscal 2019-20.
During the period, the revenue of the company was Tk145.42 crore, which was Tk110.82 crore in the previous fiscal year.
Asiatic Laboratories
Asiatic Laboratories Limited, a medium-sized pharmaceuticals company, wants to raise Tk95 crore with an initial public offering (IPO) under the book building method.
The drugmaker will spend the IPO proceeds on implementing new projects at its existing factory premises in Gazipur.
The company, which has established its brand in Bangladesh over the last 50 years, seeks a premium on the face value of Tk10 of its primary shares.
Navana Pharmaceuticals
Navana Pharmaceuticals Ltd wants to raise Tk75 crore from the capital market for business expansion to meet the growing demand in both the local and international markets.
The drugmaker will use Tk23.24 crore for a new building for general production, Tk9.73 crore for a new utility and engineering building, and Tk17.85 crore for the refurbishment of the cephalosporin unit of the company.
Navana Pharmaceuticals, which was a concern of Islam Group, was incorporated in Bangladesh in 1986.
The present board took over the company in October 2020 and since then, owners have been trying to move the business towards positivity.
According to the audited financial report for fiscal 2020-21, its net profit stood at Tk20.23 crore, up from Tk13.74 crore in the previous fiscal year.
The revenue stood at Tk360.66 crore, which was Tk314.90 crore a year ago.
Its earnings per share stood at Tk2.52, up from Tk1.71 in the previous year and the net asset value per share stood at Tk41.19.
Global Islami Bank
Global Islami Bank Ltd, a fourth-generation commercial bank, has also applied to the commission to raise Tk425 crore through IPO. The bank wants to issue shares at a face value of Tk10 under the fixed price method.
The private sector lender will invest Tk100 crore in small and medium enterprises (SMEs) considering the ample growth opportunity and mounting financing needs of the SMEs.
In addition, the bank will invest Tk268.5 crore in government securities and bonds as a secured investment.
According to sources, the bank made a profit of Tk98.54 crore after tax and provisions, while its earnings per share (EPS) stood at Tk1.91 till 30 September 2021.
