Islam Oxygen Limited, a local producer of medical, industrial and laboratory gas, has announced its plan to collect Tk93 crore through initial public offering (IPO) to nearly double its capacity through setting up a new plant.
Amid the pandemic, the company already has increased its annual production capacity to 2.5 crore cubic metres and if it can get its IPO approved the capacity would cross 4.5 crore cubic metres, the company's Managing Director Nurul Islam said in a road-show event in the capital on Monday.
Company officials presented their business details before investors and other capital market stakeholders and answered their queries.
"The expansion will help Bangladesh to be self-sufficient country in the increasingly needed medical and industrial gases by reducing the foreign dependence," said Nurul Islam, adding that his company may also export the produced gas after meeting local demand.
Islam Oxygen began its commercial operations in its Rupgonj, Narayangonj plant in 2013.
It began as a venture of three brothers who were in need of industrial oxygen for their steel mill. Gradually, the company extended their production to a wide range of industrial and medical gas.
Right now 98% of the countries hospitals are users of the medical oxygen being produced by Islam Oxygen Ltd. Also diversified industrial plants buy gas from the company, the company officials said.
The company has disclosed its financial details and projected revenue and profits before the investors.
Its annual revenue grew to Tk145 crore in the 2020-21 fiscal year, from Tk73 crore in the 2016-17 fiscal year. Over the period its net profit after tax grew to over Tk41 crore from Tk14.5 crore.
Its current paid-up capital is Tk95 crore, and earnings per share for the 2020-21 fiscal year was Tk4.37.
Net asset value per share (NAVPS) including asset revaluation surplus stood at Tk38.37 at the end of last June, while without the asset revaluation surplus added the NAV per share is Tk25.09.
The company aims for Tk270 crore in revenue in 2025 if the capacity expansion plan is executed.
Local merchant bank Janata Capital and Management Ltd is the issue manager for Islam Oxygen IPO, while Sonali Investment Ltd is the register to the issue.
In the IPO road show event held at a city hotel, the company's Chairman Shahidul Islam, Director Md Azharul Islam, Chief Operating Officer Badr Uddin Al-Hossain, Company Secretary Md. Akhtaruzzaman and other senior officials were present.