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Bangladeshi drug maker Techno Drugs has decided to raise Tk 1 billion by floating an IPO (initial public offering) under the book building method.
The company that manufactures and sells both human and veterinary medicines laid out its plan on Saturday regarding the proposed IPO at a road show at a hotel in the capital.
According to the investment plan, Tk 270 out of the IPO fund will be used for acquisition and installation of machinery and equipment.
Of the remaining fund, Tk 250 million will be used for BMRE (Balancing, Modernization, Rehabilitation and Expansion) while Tk 150 million for construction, Tk 300 million for partial loan repayment and Tk 30 million for IPO expenses.
Of the IPO shares, 15 per cent will be issued to the company's employees.
Of the remaining shares, 24 per cent will be issued to eligible investors, 1 per cent to the Exchange Traded Fund, 70 per cent to general investors and 5 per cent to non-resident Bangladeshis (NRBs).
The issue managers for the IPO are Imperial Capital Limited (ICL) and EBL Investments Limited.
The company has reported a profit of Tk 195.51 million for FY23, down from Tk 480 million a year ago.
The net asset value per share stood at Tk 27.74 for FY23, increased from Tk 22.57, after revaluation.