Lovello Ice Cream’s IPO subscription begins 3 January

Lovello Ice Cream, an ice cream brand of Taufika Foods and Agro Industries Ltd, is going to open for initial public offering (IPO) subscription on 3 January next year.

Investors will be able to apply to buy the company's primary shares until the evening of 7 January.

Earlier, on 15 October this year, the securities regulator approved the IPO proposal of Lovello Ice Cream to raise Tk30 crore from the capital market by issuing three crore shares. Each share of the company will have a face value of Tk10.

Taufika Foods and Agro Industries kicked off its commercial operations on 2 January, 2016. Its paid-up capital is Tk55 crore.

Lovello will invest the IPO fund to expand business and repay bank loans.

Banco Finance and Investment Limited and Sandhani Life Finance Limited are working as issue managers of the company for its IPO process.

Lovello's revenue rose by 93% to Tk92.28 crore in the last three years till fiscal year 2018-19.

In fiscal year 2019-20, the company posted a 2% growth in revenue despite the coronavirus pandemic.

AKM Zakaria Hossain, company secretary of Taufika Foods and Agro Industries, told The Business Standard Lovello was also facing a hard time during the pandemic like other ice cream companies.

"Yet, we could post positive growth in the last fiscal year," he added.

According to the Lovello prospectus, the ice cream market in Bangladesh was valued at Tk1,200 crore till 2019. It is a fast-growing industry which is rising by 12% per year.

Currently, six companies are manufacturing branded ice cream. Of them, only three – Igloo, Polar and Lovello – hold 80% of the market share. Premium ice cream products, which are more expensive than branded ones, account 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%.