Searle Pakistan Limited (SPL), formerly OBS Pakistan Pvt Limited and a subsidiary of The Searle Company Limited (TSCL), intends to raise over Rs 3.24 billion or US$14.45 million through an initial public offering (IPO).
The development was communicated by the Pakistan Stock Exchange (PSX) through a prospectus made available to the exchange on Thursday.
“We have been informed that Searle Pakistan Limited has applied to be listed on the stock exchange,” the PSX said in its statement.
According to the pharmaceutical company’s prospectus, the offering is 240,462,134 common shares with a par value of Rs10 each, representing 17.22% of the company’s total paid-up capital after the IPO.
The entire issue is being offered through the bookbuilding process at a reserve price of Rs.13.5 per share. The total capital to be raised at the reserve price is Rs3,246,238,809 according to the prospectus.
According to the company, 75% of the issue volume, ie 180,346,634 common shares, will initially be allocated to successful bidders and 25% of the issue, ie 60,115,500 common shares, will be offered to retail investors.
“Any unsubscribed shares of the general subscription part will be allocated proportionately to successful bidders of the bookbuilding part,” it said.
Searle Pakistan said the proceeds from the IPO would be used to “establish Option 1: a new pharmaceutical manufacturing facility in Lahore capable of producing high quality intravenous (IV), ophthalmic, dermatological and other oral solid dosage (OSD) products.” to manufacture.
“Option 2: In order to make the most of the proceeds from the IPO, the company may choose to implement the project by buying out the local IV manufacturing facility in the country,” it added.
SPL is engaged in the import, manufacture, marketing and distribution of pharmaceutical products with a strong presence in Pakistan and Sri Lanka. The company says it has developed expertise in key healthcare segments such as cardiology, neuropsychiatry, anti-infectives, gastroenterology, gynecology, ophthalmology, pulmonology, endocrinology, vaccines and bone disease.
In June last year, Citi Pharma’s IPO closed with a twofold oversubscription. The company raised Rs.2.32 billion, making it only the pharmaceutical sector’s second IPO in 23 years.
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