The initial public offering (IPO) subscription of Lovello Ice Cream – an ice cream brand of Taufika Foods and Agro Industries Ltd – will end today.
The IPO subscription began on 3 January, 2021.
Previously, on 15 October last year, the securities regulator approved the IPO proposal of Lovello Ice Cream to raise Tk30 crore from the capital market by issuing three crore shares. Each share of the company will have a face value of Tk10.
Lovello is due to invest its IPO funds in expanding its business and repaying its bank loans.
Banco Finance and Investment Limited and Sandhani Life Finance Limited are working as issue managers of the company for its IPO process.
Lovello's revenue rose by 93% to Tk92.28 crore in three consecutive years till the fiscal year (FY) 2018-2019.
In FY2019-2020, the company posted 2% growth in revenue despite the novel coronavirus pandemic.
According to the Lovello prospectus, the ice cream market in Bangladesh was valued at Tk1,200 crore till 2019. It is a fast-growing industry which is rising by 12% per year.
Currently, six companies are manufacturing branded ice cream. Of them, just three – Igloo, Polar and Lovello – together hold 80% of the market share. Premium ice cream products, which are more expensive than branded ones, account 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 its commercial operations on 2 January, 2016. Its paid-up capital is Tk55 crore.