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Silco Pharma's IPO subscription begins today to raise Tk 300m

Public subscription of Coppertech to open Mar 31


FE report | Published: March 07, 2019 10:10:51 | Updated: March 10, 2019 10:32:49


Picture used for illustrative purpose only — Collected

The initial public offering (IPO) subscription of Silco Pharmaceuticals begins today (Thursday), aiming to raise Tk 300 million from the capital market.

The subscription for shares of the pharma company by the eligible investors through electronic subscription system will be started from 10:00am Thursday and continued until 5:30pm on March 19 (round the clock).

The securities regulator -- Bangladesh Securities and Exchange Commission (BSEC) -- approved the Silco Pharma's application to raise the fund on December 20, 2018.

Using the fixed-price method, Silco Pharma will float 30 million ordinary shares of Tk 10 each, according to the BSEC approval.

As of June 2017, five financial years' weighted average earnings-per share (EPS) of the company stood at Tk 1.46 and net asset value (NAV) per share at 25.41.

The company will utilise the IPO proceeds to construct factory building, purchase machinery and delivery van and bear the IPO expenses, according to the BSEC statement.

City Bank Capital Resources, EBL Investments and Citizen Securities & Investment are jointly working as issue managers of the company's IPO.

Silco Pharma, based in Sylhet, is one of the fastest growing pharmaceutical companies in Bangladesh since 1997 and is now on its way to becoming a high-performance global player, according to its official website.

The company started its journey with only 10 products. Now, it manufactures 108 products. Every year, Silco Pharma is introducing more than 10 to 20 new products.

Silco Pharmaceuticals will be the 32nd listed company under the 'Pharmaceutical & Chemicals' sector on the DSE. This sector accounts for 15.50 per cent of the DSE's total market capitalisation.

Coppertech Industries: The public subscription of Coppertech Industries is set to begin on March 31.

The company will raise a fund worth Tk 200 million through initial public offering (IPO) using the fixed price method.

The company's IPO subscription will be opened until April 09 for resident and non-resident Bangladeshis.

The securities regulator approved the IPO proposal of Coppertech Industries on December 26, 2018.

As per the BSEC approval, the company will raise a capital worth Tk 200 million by offloading 20 million ordinary shares under the fixed price method.

The company will utilise the IPO proceeds to purchase plant and machineries, repay bank loans, construct building and IPO expenses.

As per the financial statement for the year ended on June 30, 2018 the company's net asset value (NAV) per share, without revaluation, was Tk 12.06.

For the same period, the earnings per share (NAV) of the Coppertech Industries stood at Tk 2.60, whereas the diluted EPS was Tk 1.03. The weighted average EPS was Tk 0.87.

MTB Capital is working as issue manager of the Coppertech Industries.

Located in Hobiganj, the Coppertech Industries is a copper pipe, tube, bus bar, strip, and wire manufacturer in Bangladesh. The company started its commercial operation in June 2014.

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