Acme Pesticides hopes to lead fertiliser, seeds market
The company wants to raise Tk30 crore from general investors by issuing 3 crore shares at a face value of Tk10 each
Acme Pesticides Limited is set to go public with a target of becoming the leader in the fertiliser and seeds market.
The company has expressed the desire in its initial public offering (IPO) prospectus submitted to the Bangladesh Securities and Exchange Commission (BSEC), which has already given the go-ahead for the scheme.
At the end of fiscal 2019-2020, the company's revenue stood at Tk154 crore, while its close competitors ACI Formulation and Agricultural Marketing Company Limited's revenue was Tk400 crore and Tk200 crore, respectively.
Keep updated, follow The Business Standard's Google news channel
Acme Pesticides has mentioned in the prospectus that its main objectives are to carry on the business of manufacturing, formulating, and packaging pesticide, fertiliser, plant nutrients, and animal food, and other nutrient products.
It plans to be a leading national enterprise with global aspirations, effectively pursuing multiple growth opportunities, maximising returns to the stakeholders, remaining socially and ethically responsible.
The company is committed to ensuring superior return on investment through judicious use of resources and efficient operations, utilising the core competencies, it added.
Acme Pesticides, which started business on 7 March 2010, is a concern of the Sinha Family. Acme Laboratories Ltd, which got listed on the capital market in 2016, is also a concern of the family.
Despite the Covid-19 pandemic, the company reported an 11% growth in revenue in the first nine months of fiscal 2020-2021. The revenue stood at Tk130.67 crore and the net profit at Tk17.82 crore.
On 19 July, it received BSEC approval to raise Tk30 crore from general investors by issuing 3 crore shares at a face value of Tk10 each.
Acme Pesticides Limited will use the fund to repay loans and increase production capacity.
The public subscription of the IPO will begin on 12 October and continue to 18 October.
Investors intending to buy IPO shares must have at least a Tk20,000 investment in the secondary market of the stock exchanges. An applicant must apply for IPO shares worth Tk10,000.
BSEC said the company will not be able to issue any bonus shares for the next four years after the first trading day.
