Under the code “TAUFIKA,” Lovello shares will be trading under the “N” category, as per usual practice.
The companies under the N category are later transferred to other categories based on their first dividend declaration and respective compliance.
The initial public offering (IPO) shares of Lovello Ice Cream were credited to beneficiary owner accounts on Sunday.
Earlier on 26 January, the IPO lottery draw was held online to allocate shares to general investors.
On 15 October last year, the Bangladesh Securities Exchange Commission (BSEC) approved the IPO proposal.
Lovello Ice Cream has raised Tk30 crore by issuing three crore shares at a face value of Tk10 each. The money is due to be used to purchase machinery and equipment, repay loans and meet IPO costs.
Banco Finance and Investment as well as Sandhani Life Finance are the issue managers of the company for the IPO process.
Lovello’s revenue rose by 93% to Tk92.28 crore in three consecutive years till fiscal 2018-19.
In FY20, the company posted a 2% growth in revenue despite the novel coronavirus pandemic.
According to the company’s prospectus, the size of the country’s ice cream market was Tk1,200 crore till 2019. It is a fast-growing industry, which has been expanding by 12% per year.
Currently, six companies manufacture ice cream products in Bangladesh. Of them, three ““ Igloo, Polar, and Lovello ““ together hold 80% of the market share.
Premium Ice Cream, which is more expensive than other ice-cream brands, accounts for nearly 15-20% of the market.
Igloo, the market leader, holds a 38% share while Polar has 20%. Lovello’s market share is approximately 15%.
Taufika Foods and Agro Industries started commercial operations in January 2016. Its paid-up capital is Tk55 crore.
