Local system integration and software solutions provider eGeneration is set to raise Tk 15 crore from the stock market to expand its IT business in the coming years.

The company received the Bangladesh Securities and Exchange Commission's approval last October to offload 1.5 crore shares. The company was incorporated in 2003, the year it began commercial operations.

Subscriptions for the initial public offering (IPO) started to be accepted since yesterday and will continue until January 18. The IPO proceeds will be used to buy commercial space and repay loans.

The business also plans to invest Tk 1.83 crore of the fund to enhance its IT infrastructure for the development of digital healthcare platforms to increase revenue generation.

It will also boost eGeneration's capability to better serve health sector customers with emerging technologies such as artificial intelligence, machine learning, big data analysis and blockchain, the company said in its IPO prospectus.

It will also help the company save on cloud subscription fees of Azure and Amazon web services as well as third-party data centre costs, it added.

The government has more than Tk 800 crore worth of healthcare transformation projects in the works for the next couple of years, the company said, adding that using information and communication technology was a unique concept for providing better health service.

It said to have been conducting research and development work in health technologies for the past two years.

The company plans to repay Tk 3.40 crore of its debt to IPDC Finance to minimise its interest burden of 11.5 per cent per annum.

As the demand for IT solutions has been rising amid the ongoing coronavirus pandemic, IT based companies have huge potential, said stock investor Torikul Islam.

"So, its inclusion might have a positive impact on the stock market," he added.

Local demand for software stood at $1.10 billion in 2017 while it is forecasted to hit $ 4.6 billion in 2025, according to the IPO prospectus.

"We wanted to pave the way for other technology companies in Bangladesh to get inspired by our success, raise funds from the local market, and share their accomplishments with small investors," said Shameem Ahsan, managing director of eGeneration.

"We believe this is how our ICT industry can flourish and take Bangladesh to a leading position in the global tech arena in the next decades," he added.