Intravenous Infusions Limited (IIL), Ghana's market leader in the supply of intravenous (IV) fluids, will soon list on the Ghana Alternative Exchange (GAX).
This will be the 4th equity listing on the GAX since it opened in November 2014.
IIL is offering 150 million ordinary shares valued at GH¢S0.08 per share in an Initial Public Offering (IPO), which starts from October 14 and ends on November 25, 2015.
The intention is to raise GH¢12 million.
Having begun operations in 1974, Intravenous Infusions Limited (IIL) is the oldest and most reliable indigenous IV fluids producer in Ghana and West Africa.
The Koforidua-based company currently supplies between 50-60 percent of IV fluids to hospitals and pharmacies nationwide and exports approximately 10 percent of its products to neighboring countries such as Cote d'Ivoire, Burkina Faso and Togo.
Unlike many other companies struggling to find and increase clients, IIL operates in a niche area.
For IIL, its limitation is its ability to produce enough of its product to meet the ever-increasing demand.
The company has the capacity to produce 4.5 million bags of IV fluids per year, but the aging machines and manual processes have led to production shortfalls over the last few years.
In line with this, IIL has been unable to meet demand from both local and neighbouring countries. About 6.7 million bags of IV fluids were used in Ghana in 2014, and this is expected to grow by approximately 50 percent in the next five years.
The launch of the IPO will give Intravenous Infusions the opportunity to consolidate its market leadership position in Ghana and further increase its footprint in the ECOWAS region.
The expected injection of capital will allow IIL to complete installation of a new production plant to increase capacity from the current 4.5 million bags to 15 million bags of IV fluids per year (installation is currently 90 percent complete), fully exploit untapped market opportunity in ECOWAS by growing export revenue from 10 percent to 45 percent over the next five years, improve its balance sheet and working capital and further diversify its business to the sale of over-the-counter medication.
Richard Okrah, Managing Director of Intravenous Infusions Limited said, 'IV fluids are not products most people think about on a daily basis. However, it is critical in the treatment of tropical diseases such as malaria, typhoid fever and cholera and emergencies including accidents, burns and food poisoning. IIL is also the only local producer of Magnesium Sulphate, which is used to treat pregnant mothers with hypertension. This product is critical as the government works to implement its Zero Maternal Mortality Policy and Intravenous Infusions is well-positioned to be a key partner.'
Investors are invited to be shareholders with as little as GH¢80 (i.e., 1,000 shares), and continue to purchase additional shares in multiples of GH¢40 (i.e., 500 shares).
Databank and CAL Brokers are the listing brokers.
By Samuel Boadi
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