The commission also approved the lottery draw of Express Insurance Limited through digital platform due to the ongoing Covid-19 pandemic
Bangladesh Securities and Exchange Commission (BSEC) on Thursday approved the prospectus for the Initial Public Offering (IPO) of Associated Oxygen Limited to raise Tk15 crore through the fixed price method.
The commission also approved the lottery draw of Express Insurance Limited through digital platform due to the ongoing Covid-19 pandemic.
Stock market regulator gave the approval at a commission meeting. Its chairman Prof Shibli Rubayat Ul Islam presided over the meeting.
As per the BSEC approval—under the fixed price method— Associated Oxygen Limited will offload 15 million ordinary shares for Tk10 each.
Net proceeds from the IPO will be used for procurement and installation of machinery for the existing factory unit, partial repayment of bank loans of the company and to meet the IPO expenses.
According to the financial statement ended on June 30, 2019, the company's net asset value (NAV) per share stood at Tk17.37, while the weighted average of earnings per share (EPS) was Tk1.51.
BD Finance Capital Holdings Limited will act as the issue manager for the IPO process.
Associated Oxygen Limited 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 currently has a capacity of 2500 m3 per hour of Oxygen / Nitrogen gases and 2,00,000 m3 per annum capacity of Dissolved Acetylene gas having manufacturing facilities at Pondicherry and Tamil nadu.
The oxygen company supplies Oxygen and Nitrogen in liquid and gaseous forms to Industries and Hospitals through its own sales network.