Home ›› 01 Sep 2022 ›› Stock
The Bangladesh Securities and Exchange Commission (BSEC) has given its approval to Asiatic Laboratories to raise money from the stock market using the book building system.
The approval was given at a BSEC’s regular commission meeting on Wednesday, according to a statement.
The issue size of the company is Tk 95 crore.
The IPO proceeds will be spent on constructing buildings, and debt repayments and meeting IPO costs.
At the roadshow in October last year, it’s Managing Director Monir Ahmed said, “The IPO will enable us to achieve our desired production capacity and market share.”
“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.
According to the company’s audited financial statements as of June 30, 2021, the Net Asset Value (NAV) with revaluation was Tk 56.61, NAV without revaluation Tk 35.48, and the Earnings per Share (EPS) Tk 3.21 considering weighted average rate of the last 5 years.
The company will distribute shares to general investors at a 30 per cent discount to the cut-off price or Tk 20, whichever is less. Besides, the company cannot declare, approve, or distribute any kind of dividend before being listed on the capital market.
Shahjalal Equity Management Limited acts as the issue manager for the IPO process.
The company has paid-up capital of Tk 88 crore.
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.
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 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 to the market such as antibiotics, antihistamines, vitamin minerals, anti-ulcer ant, laxatives, skin products, eye products etc.
