Home ›› 27 Oct 2021 ›› Stock
Islam Oxygen Limited plans to make its debut in share trading and collect Tk 93 crore from the capital market in order to expand business, boost production, and increase market share.
The local oxygen producing company will raise the fund by issuing initial public offers (IPO) under the book-building method, it revealed at a roadshow at a private hotel in Dhaka on Monday night.
After spending on the IPO, the company will spend the rest of the proceeds to set up new factory buildings, plants and machineries.
Speaking at the roadshow, Islam Oxygen Managing Director Nurul Islam said, “We have been able to increase our production capacity to 2.5 crore cubic meters per year in the financial year 2020-2021. With the money raised from the market through IPO, we will set up a liquid gas plant and a new factory building.”
“With the setting up of this plant, our current production capacity will increase to about 45 million cubic meters. This will make Bangladesh a self-sufficient gas rich country by reducing the foreign dependence on the country's gas industry,” added the MD.
He also revealed that they have a plan to export oxygen after fulfilling the local demand.
According to the projected financial statement, Islam Oxygen will have a revenue of Tk 270.27 crore in 2025 and production capacity will increase to 4.87 crore cubic meters per year.
“We will be able to meet the market demand of Bangladesh and then export to other countries. Now it is the best time to invest in Islam Oxygen Limited and we believe that, we will be able to give our shareholders the right returns and start our next milestone in the capital market," he said.
Islam Oxygen Limited started its commercial production in 2013 through the production of industrial oxygen.
As the industrial demand for gas increased in course of time, the company started producing and supplying carbon-di-oxide, argon, nitrogen, hydrogen, helium, Argo, shield, carbon and various types of industrial mixed gas.
Thus, it has been successful to ensure a strong position in the industrial gas market of Bangladesh.
According to its audited financial report, the net profit of the company stood at Tk 41.48 crore in the fiscal year 2020-21, which was Tk 26.34 crore in 2019-20.
During the period, the revenue of the company was Tk 145.42 crore, which was Tk 110.82 crore in the previous fiscal year.
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 per cent 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.
