Quotations in the Electronic Subscription System (ESS) to determine the share price of Asiatic Laboratories Ltd are scheduled to start on October 10th and last until October 13th, according to a publication by the Dhaka Stock Exchange (DSE) on Sunday.
On Aug. 31, the Bangladesh Securities and Exchange Commission (BSEC) allowed the company to set the floor price of its shares through bids from approved investors — a requirement for the IPO using the bookbuilding method.
Only institutional investors can participate in determining the minimum price of the company’s shares in the electronic bidding process. The cutoff price is determined based on the bids submitted by investors.
Institutional investors are said to buy the company’s shares at the cutoff price, while general investors can buy the shares at a 30% discount.
The company wants to raise Tk95 crore from the capital market, mainly to start producing cancer drugs.
It will use Tk 58.05 crore to purchase and install machinery, Tk 6.26 crore to build factories and Tk 28 crore to repay bank loans.
Asiatic Laboratories is engaged in manufacturing and marketing of organic, non-organic and sterile products such as tablets, capsules, syrups, creams, eye products, injections and more.
Currently, the company produces 6 million tablets, 5 million capsules, 2 million injections, 1.5 million tube creams and 1.6 million bottles of syrup every year.
Its annual revenue in fiscal 2020-21 increased to Tk145 billion from Tk119.6 billion five years ago.
Local merchant bank Shahjalal Equity Management is the underwriting manager and BMSL Investments is the registrar for the company’s IPO.
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