Digicon Technologies seeks to go public for expansion
The company has applied to the Bangladesh Securities and Exchange Commission (BSEC) to issue three crore ordinary shares at a face value of Tk10
Digicon Technologies PLC, a leading IT-enabled service provider, seeks to raise Tk30 crore through an initial public offering (IPO) from the capital market to fuel its expansion endeavours.
The company has applied to the Bangladesh Securities and Exchange Commission (BSEC) to issue three crore ordinary shares at a face value of Tk10.
As per its IPO utilisation plan, the firm intends to allocate Tk5.5 crore to repay a term loan, Tk4.5 crore for working capital, Tk18.55 crore for capital expenditures, and Tk1.45 crore for IPO expenses.
Digicon Technologies is one of the largest business process outsourcing (BPO) companies in Bangladesh. Its principal business activities include ITES services, IT training, IT consultancy, IT solutions, BPO and call centre services, HR management and payroll services, digital services, marketing of software products, and providing maintenance and managed services.
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Wahidur Rahman Sharif, managing director of Digicon Technologies, told The Business Standard that under the government's Smart Bangladesh vision, numerous IT-based development projects will be created within the country.
In the future, these projects will be automated and implemented through IT companies, creating new opportunities for the sector, he added.
"Additionally, foreign companies now prefer to obtain services at a lower cost, as these services are quite expensive in their own countries. They are prioritising countries like Bangladesh, leading to new opportunities in outsourcing. To capitalise on these prospects, we aim to make our companies more competitive," he said.
"Furthermore, we plan to increase compliance by listing our company on the stock market, which will make it easier to meet customers' requirements. The anticipated successful business expansion will further strengthen our company's foundation in this sector," he added.
IT-enabled services and project income are the major revenue sources for the company. In the first six months of the current fiscal year, the company registered a revenue of Tk22.23 crore, an increase from Tk17.80 crore in the equivalent period the previous year.
Of this revenue, Tk14.20 crore came from IT-enabled services and Tk8.03 crore from project income services.
Its profit after tax stood at Tk3.16 crore, a 6% increase from Tk2.97 crore in the corresponding period of the previous year.
Its earnings per share were Tk1.15, compared to Tk1.08 a year ago. Its net asset value per share stood at Tk21.16 at the end of December 2023.
In FY23, the company made revenue of Tk45.15 crore, up from Tk41.78 crore in FY22. During the year, its profit after tax was Tk4.07 crore, a 195% increase from Tk1.38 crore in the previous fiscal year.
Its authorised capital is Tk100 crore, while its paid-up capital stood at Tk27.50 crore.
The company has invested in TechCity Bangladesh Limited, incorporated in October 2017, with a paid-up capital of Tk50 lakh. Digicon Technologies PLC owns 45% of the company. Digicon Technologies PLC started its business in December 2010 and is situated at Sheikh Hasina Software Technology Park, Jashore.
The Bangladesh Association of Contact Center and Outsourcing wrote on its website that the ICT sector in Bangladesh is poised for continued expansion.
According to the International Telecommunication Union (ITU), the number of internet users nearly tripled from 6.5% of the population in 2013 to 18.02% in 2017. Bangladesh ranked 147 out of 176 on the ITU's ICT Development Index 2017, an occasional report that captures the level of ICT development.
