Thai Foils & Polymer Industries Limited, an Al-Mostafa Group concern and a leading manufacturer of packaging materials, is considering raising about Tk120 crore through an initial public offering (IPO) to expand its business and repay debts.
The company has appointed local investment bank Green Delta Capital as the issue manager of the deal, according to a press statement on Wednesday.
Md Rafiqul Islam, managing director of Green Delta Capital and Mostofa Kamal, managing director of Al-Mostafa Group, recently signed an agreement in this regard on behalf of their respective organisations.
"The listing is a timely move for our group as it will enable us to tap into the equity capital market to raise funds to accelerate the growth of our core business activities," Mostofa Kamal said during the signing ceremony held in the capital
"Along with Green Delta Capital Limited, we hope to perform well which shall leave an impact on our capital market as well as on our economy," he added
According to company officials, Thai Foils aims to increase its industrial chemical production, mostly used in packaging material manufacturing, if it gets the regulatory approval for the IPO.
Demand for packaging materials is increasing at a double-digit rate in Bangladesh, they said.
Meanwhile, Rafiqul Islam of Green Delta Capital said, "As a full-fledged merchant bank, it is a continuous effort from us to bring good companies into the capital market. And the issue management of Thai Foils and Polymer Industries is going to be a milestone for us."