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Business News of Tuesday, 13 October 2015

Source: GNA

Intravenous infusions to launch initial public offering

Intravenous Infusions Limited (IIL), Ghana’s market leader in the supply of intravenous (I V) fluids, would on Wednesday, launch an Initial Public Offering (IPO) to raise GH¢ 12 million to expand its operations.

IIL is offering 150 million ordinary shares at GH¢ 0. 08 per share in an Initial Public Offering ( IPO), which starts from October 14 and ends on November 25.

The IPO would give intravenous infusion the opportunity to consolidate its market leadership position in Ghana and further increase its footprint in the ECOWAS region.

It would also pave way for the company to list on the Ghana Alternative Exchange (GAX), becoming only the 4th equity on the GAX since it opened in November 2014.

A statement from IIL said the expected injection of capital would allow the company 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, which is currently 90 per cent complete, would enable the company to fully exploit untapped market opportunity in ECOWAS by growing export revenue from 10 per cent to 45 per cent over the next five years.

It would also help improve balance sheet and working capital as well as allow the company to further diversify its business into the sale of over-the-counter medication.

While the company has the capacity to produce 4.5 million bags of IV fluids per year, the ageing machines and manual processes have seen production fall over the last few years.

As such ILL 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 per cent in the next five years.

“Not only will the IPO afford us the ability to meet growing demand in Ghana and beyond, it will also significantly increase our ability to help save lives,” the statement quoted Mr Richard Okrah, Managing Director of ILL as saying.

Mr Okrah said the company’s products are critical as the government work to implement its Zero Maternal Mortality Policy.

Intravenous Infusions Limited began operations in 1974 and is the oldest and most reliable indigenous IV fluids producers in Ghana and West Africa.

The Koforidua-based company currently supplies from 50-60 per cent of IV fluids to hospitals and pharmacies nationwide and exports about 10 per cent of its products to neighbouring countries such as Cote d’Ivoire, Burkina Faso and Togo.