IPO subscription of two companies this month

Indo-Bangla Pharma, Kattali Textile to raise a total Tk 540m


FE Report | Published: August 05, 2018 12:36:29


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The public subscription of Indo-Bangla Pharmaceuticals Ltd and Kattali Textile Ltd will open on August 09 and August 28 respectively, officials said.

Indo-Bangla Pharma: The initial public offering (IPO) subscription of Indo-Bangla Pharmaceuticals is set to open on August 09 which will be continued till August 16 for resident and non-resident Bangladeshis.

The subscription was supposed to begin on April 08, but suspended following a writ petition filed with the High Court by National Bank Limited (NBL).

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The NBL filed the writ petition as four directors of the company were 'loan defaulters' as the guarantors of loans disbursed by the bank.

The HC withdrew its stay order later on as the Indo-Bangla Pharmaceuticals and NBL reached a solution regarding the loan issue.

The Bangladesh Securities and Exchange Commission (BSEC) approved the company's IPO proposal on October 3, 2017.

As per the BSEC approval, Indo-Bangla will raise a fund worth Tk 200 million by issuing 20 million ordinary shares at an offer price of Tk 10 each under the fixed price method.

A market lot is 500 shares and an investor needs Tk 5,000 per lot to apply for the IPO.

The required amount (per lot) of foreign currency for NRBs and foreign applicants for IPO is US$ 60.43 or GBP 43.60 or EUR 49.26, according to Dhaka Stock Exchange (DSE).

The company will utilise 29.29 per cent of the IPO proceeds for construction and other civil works, 62.36 per cent for purchasing machineries and 8.35 per cent for bearing IPO expenses, according to the IPO prospectus.

As per the financial statement for the year ended on June 30, 2016, the company's net asset value (NAV) per share and earnings per share (EPS) are Tk 11.63 and Tk 2.62 respectively.

The company's pre-IPO paid-up capital is Tk 730 million and authorised capital is Tk 1.0 billion.

AFC Capital, EBL Investments and CAPM Advisory are working together as issue manager of the IPO.

Indo-Bangla Pharmaceuticals, the flagship company of IBP Group was established in 1954, incorporated as a private limited company under the Companies Act on June 18, 2014 and was converted into a public limited company on October 21, 2014.

The company is engaged in manufacturing and selling of all kinds of medicine (excluding antibiotic), medical preparations drugs & chemicals (Human Health).

Kattali Textile: The public subscription of Kattali Textile will begin on August 28 to raise a fund worth Tk 340 million from the public.

The IPO subscription of the company will be continued till September 13 under fixed price method.

The securities regulator has approved the IPO proposal of Kattali Textile on June 26.

The company will offload 34 million ordinary shares at an offer price of Tk 10 each.

The IPO fund will be utilised to construct building for factory and employees' dormitory, purchase machinery for extended unit, install electric transformer and generator, repay bank loans and bear IPO expenses.

As per the financial statement for the year ended on June 30, 2017, the company's net asset value (NAV), without revaluation, is Tk 20.48 per share. And the earnings per share (EPS) is Tk 1.98.

NRB Equity Management is working as the issue manager.

Kattali Textile is a production unit of Asian Group, established in 2002 with the aim to cater to world-class buyers and as such the facilities comply with all the latest requirements of structural, environmental, social and ethical standards, according to the company's website.

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