IPO subscription of Asiatic Lab begins Jan 16

The primary subscription to the initial public offering (IPO) of Asiatic Laboratories Limited will open on January 16 and continue until January 22.

The drug maker targets to raise a fund worth Tk 95 crore through the issuance of the initial public offering.

According to the regulatory directive, the company will have to issue IPO shares to individual investors, including NRBs, at a 30 per cent discount to the cut-off price or at Tk 20 each, whichever is lower.

The cut-off price was set at Tk 50 through bids by eligible investors, a requirement for the listing under the book-building method.

So, individual investors will be able to purchase shares at Tk 20 each through the electronic subscription system of the stock exchanges.

The pharma company received approval from the Bangladesh Securities and Exchange Commission (BSEC) on August 31 to explore the cut-off price.

From the IPO proceeds, Tk 58 crore will be spent on the acquisition and installation of machinery, Tk 6.14 crore on the construction of a factory building, and Tk 28 crore on the repayment of bank loans, alongside the IPO expenses.

As per the financial statements of the company for the year ended June 30, 2021, its net asset value (NAV) per share stood at Tk56.61 with revaluation, while the value is Tk35.48 without revaluation.

For the same period, the company’s earnings per share (EPS) stood at Tk3.65 and the weighted average of five years’ EPS is Tk3.21.

Accordingly, the price was fixed through electronic bidding by eligible investors between October 10 and October 13.

During this time, 221 eligible investors offered between Tk 20 and Tk 50 to buy a share of the Asiatic. Among them, 161 bidders offered the highest price of Tk 50.

The company began operations in 1998 to manufacture, sell, and distribute pharmaceutical products.

Shahjalal Equity Management is working as the issue manager for the company’s IPO process.