Islam Oxygen to go public to develop its business

Strong points

  • The company wants to increase the Tk93cr through the creation of books
  • Its net profit was Tk41.48cr in fiscal year 2020-21
  • The turnover amounted to Tk145.42cr during the period
  • Linde, Spectra and DR Industries are key players in the market

Oxygen maker and supplier Islam Oxygen Limited wants to raise Tk 93million in the capital market through a pound-building method for its business expansion.

The company will spend Tk 90.70 crore on the expansion. According to the expenditure breakdown, Tk 87.15 crore will be spent on new machinery equipment and Tk 3.55 crore on the construction of sheds for the generators and a new factory.

Created in 2009, the commercial entity wants a premium on the nominal value of 10 Tk of its primary shares.

In Bangladesh, when a company wants a premium, institutional investors set a benchmark price for shares through a tender, and general investors will be able to buy primary stocks at a 10% discount.

In accordance with the book building criteria, Islam Oxygen will organize a roadshow on October 25 in Dhaka, where it will present the company to institutional investors.

The entity is engaged in the manufacture and supply of medical, industrial and laboratory gases. Its manufacturing plant is located in the Tarabo region of Narayangonj.

According to the audited financial report for fiscal year 2020-21, the company’s net profit was Tk 41.48 crore, compared to Tk 26.34 crore in 2019-20.

During the period, the company’s turnover was Tk 145.42 crore, compared to Tk 110.82 crore in the previous year.

The company’s earnings per share were Tk 4.37, compared to Tk 2.77 the previous year. The net asset value per share with revaluation stood at 38.37 Tk and without revaluation at 25.09 Tk during the period.

Company management declined to comment further.

According to the company’s website, Md Nurul Islam, managing director of the company, said: “Over the past decade, IOL [Islam Oxygen Limited] provided the carbonated solutions, maximizing value for our customers in the country. For many years, we have experienced steady growth, achieved long-term success and faced tough times. “

“We are always looking for opportunities to improve our operations and increase our productivity; our efforts are aimed at using existing assets more efficiently and developing sustainable opportunities for the future, ”he says.

Linde Bangladesh, Spectra Oxygen Limited, Islam Oxygen Limited, DR Industries Limited and Bangladesh Industrial Gas Limited are the main players in the local oxygen market. Linde alone supplies 75% of the total oxygen demand in Bangladesh.

In addition, KROL Oxygen, Associated Oxygen, Median Oxygen, Oxycon Limited, Sima Oxygen and SL Oxygen Limited produce oxygen for the local market.

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