Two new companies, Omera Petroleum Ltd and JMI Hospital Requisite Manufacturing Ltd, intend to raise Tk291 crore from share market through the book building method of Initial Public Offering (IPO).
Omera Petroleum targets raising Tk216 crore whereas JMI Hospital Requisite Manufacturing aims to raise Tk75 crore.
A company, with a face value of Tk10, targeting to receive premium has to apply through the IPO book building method.
With the approval of the Bangladesh Securities and Exchange Commission, eligible investors can fix the premium of shares through the book building method, in an auction.
Before doing that, with the participation of eligible investors, a company have to arrange a roadshow to present its detailed financial conditions and plans.
Omera Petroleum Ltd
Established in 2015, Omera Petroleum Ltd is known in the local market for its liquefied petroleum gas (LPG) brand. The company, a subsidiary of MJL BD Ltd, is listed in the share market.
To offer IPO, Omera Petroleum will arrange a roadshow on October 20 at Radisson Blu Dhaka Water Garden.
Akhter Hossain Sannamat, chief financial officer of Omera Petroleum, told The Business Standard: "We want to collect Tk216 crore from the share market. Of this, Tk176 crore will be used for purchasing an ocean-going ship with a capacity of carrying 3,800-tonne goods. Besides, the money will be used for the repayment of loan worth Tk40 crore."
The company's issue managers for getting listed in the share market are Lankabangla Investments Limited (LBIL) and Unicap Investments Limited, while BLI Capital Ltd is its registrar to the issue.
Omera Petroleum has three LPG processing centres capable of processing 3 lakh tonnes of gas per year.
Acting Chief Executive Officer of the LBIL and also issue manager for the company Iftekhar Alam said: "Industrialization is increasing the demand of LPG and its use in household work is also on the rise. Omera Petroleum is doing good in this business. The inclusion of such company in share market will benefit the investors."
The company has a paid-up capital of Tk172 crore, MJL BD being 64.50 percent, BB Energy Asia Ltd being 25 percent, and Netherlands Development Finance being 12.50 percent shareholders.
In the first 9 months of FY2019, the company sold LPG worth Tk816.35 crore. In the previous year, the sale was Tk898.90 crore and the earning per share of the company was Tk2.91.
JMI Hospital Requisite Manufacturing Ltd
JMI Hospital Requisite Manufacturing Ltd, a sister concern of JMI Group, will arrange a roadshow for getting listed in the share market through book building method at the Bangabandhu International Conference Centre on October 20.
The issue manager for the company is ICB Capital Management Ltd and Janata Capital and Investment Ltd, while Citizen Securities and Investment Ltd is its registrar to the issue.
JMI Hospital Requisite intends to collect funds worth Tk75 crore from the share market. The money will be used for upgradation and extension of its factory and repayment of loans, said Shuvash Banik, manager of accounts and finance of the company.
Established in 2011, JMI Hospital Requisite manufactures medical devices of plastic, rubber, and silicon. After meeting local demand, the company is exporting its goods.
With a paid-up capital of Tk90 crore, the earning per share of JMI Hospital Requisite was Tk2.36 in the FY2018.
Sohel Rahman, chief executive officer of ICB Capital, told The Business Standard: "JMI Group has been doing good in the medical sector. The group also has foreign investment. So, the inclusion of this type of company will enrich the share market."
JMI Syringes and Medical Devices Ltd, another sister concern of GMI Group, is already listed in the share market.