Asiatic Laboratories to go public

Local drug maker Asiatic Laboratories Limited plans to go public to raise Tk 95 crore using the book building method.

The information document was presented on Sunday night at a roadshow for institutional investors in a Dhaka’s hotel.

After spending on the IPO, the company will use the money to build new factory buildings, capital machinery, and partial repayment of loans.

The company has paid-up capital of Tk 88 crore. Its earnings-per-share stood at Tk 3.65 at the end of June this year, while the net asset value per share was Tk 35.48.

To gain market share and to become a reputed pharmaceutical company in Bangladesh, Asiatic Laboratories is preparing to launch the IPO under the book-building method.

Speaking at the roadshow, Managing Director Md Monir Ahmed said, "The IPO will enable us to achieve our desired production capacity and market share.”

According to the projected financial statement, the company’s sales revenue in 2025 will be Tk 287.63 crore and production capacity will increase to 2.87 crore pieces per year, he said.

“This means that the sales revenue will increase by 98 per cent from the current sales revenue and the payback period is presumed 2.5 years. We will be able to meet the market demand of Bangladesh and then export to other developed countries,” he said.

He said, “This is the best time to invest in Asiatic Laboratories Ltd. and we will be able to give our shareholders the right returns and start our next milestone in the capital market."

Asiatic Laboratories was incorporated as a private limited company on July 25, 1970, and subsequently converted to a Public Limited Company on March 12, 2020.

During the Covid-19 pandemic time in 2020, the company marketed antiseptic solutions and officially supplied some life-saving drugs.

Asiatic is engaged in the production and marketing of biological, non-biological and sterile products such as tablets, capsules, syrups, creams, eye products, injections etc. In the meantime, 80 generics of different groups are supplied in the market such as antibiotics, antihistamines, vitamin minerals, anti-ulcer ant, laxatives, skin products, eye products etc.