The initial public offering (IPO) subscription of Associated Oxygen Ltd is set to open on September 10, aiming to raise Tk 150 million from the capital market.
The IPO subscription for shares of the company by the eligible investors through electronic subscription system will be continued until September 16, according to the company's IPO prospectus.
The Bangladesh Securities and Exchange Commission (BSEC) on July 16 approved the company's proposal to raise the fund from the capital market through initial public offering.
As per the BSEC approval, the company will issue 15 million ordinary shares with an offer price of Tk 10 each using the fixed price method.
The IPO proceeds will be used for construction of store shed and new plant shed, acquisition of new plant and machinery, repay bank loans and IPO expenses, according to the prospectus.
According to the audited financial report for the year ended on June 30, 2019, the weighted average earnings per share of the company in the last five years stood at Tk 1.51. And, its net asset value (NAV) per share was Tk 17.37 without revaluation.
BD Finance Capital Holdings Ltd is working as the issue manager of the company for its IPO process.
Started commercial operation in 1992, the Associated Oxygen is a leading producer and supplier of industrial gases both in liquid and gaseous forms with a well-established business relationship with their clients over the last three decades in this business.
The company supplies oxygen and nitrogen in liquid and gaseous forms to industries and hospitals through its own sales network.
Currently its has a capacity of 827,492 cubic meter per month of oxygen/nitrogen gases and 9,929,900 cubic meter per annum capacity of dissolved acetylene gas having manufacturing facilities at Sitakunda of Chattogram, according to its website.