Omera Petroleum, a subsidiary of Mobil Jamuna Bangladesh, plans to raise Tk 238.43 crore from the stock market to expand its liquefied petroleum gas (LPG) business.
The company is engaged in import, storage, bottling and distribution of LPG since 2015.
Of the initial public offering (IPO) proceeds, it will purchase a modern seaworthy vessel with a capacity of 4,000 tonnes of liquid petroleum gas. Meanwhile, Tk 46.75 crore will be utilised for repayment of the company’s bank loans.
Shamsul Haque Ahmed, chief executive officer of Omera Petroleum, said the carrying cost of imported LPG will decline once the vessel is bought.
“The cost would come down at least $35 per tonne due to the vessel, so our competitiveness will rise and we will be able to reduce the LPG price for customers,” he said, adding that the vessel would be bought from Japan.
LPG would be the most important energy solution in future, so they have decided to go for extension of the business, said Azam J Chowdhury, director of the company, at the road show for the IPO held at the capital’s Radisson Blu Water Garden hotel on Sunday.
“Worldwide, people are becoming more environmentally aware, so the use of traditional energy like diesel and crude oil will decline and LPG will take the lead,” Chowdhury said.
On the other hand, the country is becoming urbanised at a fast rate. “From where will the government provide natural gas? So, the demand for LPG would increase by the day,” he added.
On the same day, JMI Hospital Requisite, a subsidiary of JMI Group, organised a road show at the Bangabandhu International Convention Centre to raise Tk 75 crore under the book-building method. Md. Abdur Razzaq, managing director of JMI Hospital Requisite, said the demand for medical devices in domestic and global markets are increasing rapidly.
To meet the demand, JMI has taken the initiative to create new devices. It will increase the business in the sector, he said.