A bidding to explore the cut-off price of shares of Asiatic Laboratories for its initial public offering (IPO) will begin at 3:00 pm on October 10.
Eligible investors (EIs) will participate in the bidding through electronic subscription system of the stock exchanges.
The 72-hours bidding, a requirement for the companies going public under the book-building method, will close at 3:00pm on October 13, according to a disclosure on the Dhaka Stock Exchange (DSE) website on Sunday.
The valuation report submission period for eligible investors through the electronic subscription system will start at 9:00am on October 16 and continue until 9:00am on October 18, according to the disclosure.
Asiatic Laboratories will raise Tk 950 million through IPO for the purpose of business expansion.
Asiatic Laboratories received the approval from the Bangladesh Securities and Exchange Commission (BSEC) on August 31 this year for raising the money from the capital market.
As per rules, each eligible investor (EI) who intends to submit applications should maintain a minimum investment of Tk 30 million in matured listed securities at market price as on September 28 while the amount is Tk 15 million for pension funds, recognised provident funds and gratuity funds.
The minimum bidding value is set at Tk 5.0 million.
The Central Depository Bangladesh Ltd (CDBL) will send a report to the exchanges regarding holding of EIs in listed securities and the exchanges will ensure the compliance in this regard, the disclosure said.
As the company is seeking a premium over its face value, it will fix a cut-off price through bidding among eligible investors.
The company will issue IPO shares to general investors at 30 per cent discount on the cut-off price or Tk 20 each, whichever is lower, as per the BSEC approval.
The drug maker will use the IPO proceeds for business expansion, construction of buildings, repayment of bank loans and meeting IPO expenses.
The company will not be allowed to recommend, approve or distribute any kind of dividends before its listing on the stock exchanges, according to the BSEC approval.
As per the financial statements of the company for the year ended on June 30, 2021, its net asset value (NAV) per share stood at Tk 56.61 with revaluation, and Tk 35.48 without revaluation.
For the same period, the company's earnings per share (EPS) stood at Tk 3.65 and the weighted average of five years' EPS is Tk 3.21.
Shahjalal Equity Management is working as the issue manager for the IPO.
Asiatic Laboratories held a road show on October 24, 2021, where eligible investors such as merchant bankers and portfolio managers, asset managers, stock dealers, foreign investors, and other institutional investors joined the event.
A road show is a requirement under the book-building regulations before the price discovery of a company's shares.
Incorporated in 1970, the Asiatic Laboratories started commercial production in 1998. The principal activities of the company are manufacturing, selling and distributing pharmaceutical products (human drugs) across the country. Its factory is located in Tongi, Gazipur.