Islam Oxygen to go public for business expansion

Highlights

• The firm wants to raise Tk93cr through book building
• Its net profit was Tk41.48cr in the 2020-21 fiscal year
• The revenue stood at Tk145.42cr during the period
• Linde, Spectra and DR Industries are key market players  

Oxygen manufacturer and supplier Islam Oxygen Limited wants to raise Tk93 crore from the capital market through a book-building method for its business expansion.

The company will spend Tk90.70 crore on the expansion. According to the spending breakdown, Tk87.15 crore will be spent on new capital machinery and Tk3.55 crore on the construction of sheds for generators and a new plant.

Established in 2009, the business entity wants a premium on the face value of Tk10 of its primary shares.

In Bangladesh, when a company wants a premium, institutional investors set a reference price of the shares through bidding and general investors will be able to purchase the primary shares at a 10% discount. 

As per the book building criteria, Islam Oxygen will arrange a roadshow on 25 October in Dhaka, where it will introduce the company to institutional investors.

The entity is engaged in manufacturing and supplying medical, industrial, and laboratory gases. Its manufacturing plant is located in Narayangonj's Tarabo area.

According to the audited financial report of the 2020-21 fiscal year, the net profit of the company stood at Tk41.48 crore, which was Tk26.34 crore in 2019-20.

During the period, the revenue of the company was Tk145.42 crore, which was Tk110.82 crore in the previous fiscal year.

The company's earnings per share were Tk4.37, which was Tk2.77 in the previous year. The net asset value per share with revaluation stood at Tk38.37 and without revaluation at Tk25.09 during the period.

The company management refused to make any comment further.

As per the company's website, Md Nurul Islam, managing director of the company, says, "For the last decade, IOL [Islam Oxygen Limited] has provided the gaseous solutions, maximizing the value for our customers in the country. For many years we have witnessed consistent growth, achieved long-term success, and faced challenging times".

"We continuously seek opportunities to improve our operations and increase our productivity; our efforts are aimed at using existing assets more efficiently and developing sustainable opportunities for the future," he states.

Linde Bangladesh, Spectra Oxygen Limited, Islam Oxygen Limited, DR Industries Limited, and Bangladesh Industrial Gas Limited are the major player in the local oxygen market. Linde alone supplies 75% of the total oxygen demand in Bangladesh.

Besides, KROL Oxygen, Associated Oxygen, Median Oxygen, Oxycon Limited, Sima Oxygen, and SL Oxygen Limited produce oxygen for the local market.