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The third SME IPO subscription starts today

  • Published at 09:19 pm September 11th, 2021
Master Feed Agrotec

Master Feed Agrotec is engaged in producing feed for poultry, fish and cattle

Master Feed Agrotec is set to become the country’s third scrip to raise money through the initial public offering (IPO) in the newly launched small and medium enterprise (SME) platform. 

The company will offload 1 crore ordinary shares at Tk10 for each share to the qualified investors under the fixed price method, adding to the currently outstanding share number of 5.71505 crores. 

Master Feed Agrotec will utilize the raised amount as working capital for holding inventories. 

Qualified investors can place their bids between September 12 and September 16, informed by the IPO notice issued by the company. 

Master Feed Agrotec is engaged in producing feed for poultry, fish and cattle.

The company is also involved in farming poultry and fish, according to its IPO prospectus. 

The company reported Tk54.3 crore in sales during the July-December period of 2020, resulting in a net profit after tax of Tk3.9 crore. 

It sold 16,523 metric tonnes of feed during the period, which contributed a lion share of 94% of the total revenue. 

Master Feed Agrotec sold poultry feed worth Tk33.8 crore, fish feed Tk14.8 crore, cattle feed Tk2.2 crore, poultry Tk1.3 crore and fisheries Tk2.2 crore in the last six months of the calendar year 2020.  

As per company estimates, the revenue has been projected to grow at 10% per annum during the upcoming couple of years. 

Earlier in 2019, the company applied to be listed on the main board of the bourses by raising Tk30 crore but failed. 

Later, the IPO application was moved to the SME platform after the apex regulator paved the way by waiving the rule that barred companies with more than Tk30 crore paid-up capital to be listed on the platform.