Initial public offering (IPO) shares of Lovello Ice Cream – a brand of Taufika Foods and Agro Industries Ltd – were credited to beneficiary owners' accounts on Sunday.
On 26 January, the company's IPO lottery draw was held online to allocate shares to general investors.
The stock exchanges have not yet set the trading date.
The company is due to raise Tk30 crore by issuing three crore shares at a face value of Tk10 each. The money would be used to purchase machinery and equipment, repay loans and meet IPO costs.
Lovello's IPO subscription was held between 3-7 January.
On 15 October last year, the securities regulator approved the company's IPO proposal.
Banco Finance and Investment Limited as well as Sandhani Life Finance Limited are the issue managers of the company for the IPO process.
Lovello's revenue rose by 93% to Tk92.28 crore in three consecutive years till the 2018-19 fiscal year.
In FY20, the company posted 2% growth in revenue despite the novel coronavirus pandemic.
According to the company's prospectus, the ice cream market in Bangladesh was valued at Tk1,200 crore till 2019. It is a fast-growing industry which is expanding by 12% per year.
Currently, six companies are manufacturing ice cream products. Of them, just three – Igloo, Polar and Lovello – together hold 80% of market share. Premium ice-cream, which is more expensive than branded ice-cream, accounts for nearly 15-20% of the market.
Igloo, the market leader, holds a 38% share while Polar has 20%. Lovello's market share is approximately 15%.
Taufika Foods and Agro Industries started commercial operations on 2 January, 2016. Its paid-up capital is Tk55 crore.