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Asiatic Laboratories will make its share trading debut on Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) on Wednesday under the ‘N’ category.
The drug marker received approval from the Bangladesh Securities and Exchange Commission (BSEC) in August 2022 to determine the cut-off price through bidding by eligible investors – a requirement for going public under the book-building method.
The cut-off price of the shares of the company was fixed at Tk 50 each. The general investors, however, got at Tk 20 each, a 60 per cent discount as per the rule set by the stock market regulator.
The IPO subscription of the company was held between February 4 and February 8 to raise Tk 950 million from the primary market under the book-building method.
The company’s IPO share oversubscribed by 4.16 times as it received more than Tk 3.95 billion as against IPO shares worth Tk 950 million.
Each general investor received at least 86 initial public offering (IPO) shares of Asiatic Laboratories, while non-resident Bangladeshis got 143 shares against a deposit of Tk 10,000.
Asiatic Laboratories will utilise the IPO proceeds for business expansion --- construction of production buildings, repayment of bank loans, and IPO expenses.
Started commercial operation in 2000, Asiatic Laboratories is engaged in the production and marketing of more than 80 generic molecules comprising different types of tablets, capsules, syrups, creams, eye care products, injections, and more.
At present, the company produces 6.0 million tablets, 5.0 million capsules, 2.0 million injections, 1.5 million tube creams, and 1.6 million bottles of syrup every year.
Shahjalal Equity Management is working as the issue manager.