The submission of tenders to determine the IPO of JMI Hospital Requisite Manufacturing Limited is scheduled to begin on Sunday at 5:00 p.m. on the Dhaka Stock Exchange.
The call for tenders runs according to the bookbuilding process until January 12th.
The manufacturer of modern medical instruments and hospital equipment had previously received approval from the Bangladesh Securities and Exchange Commission (BSEC) to raise Tk 75 million in loans from the capital market.
It will use the fund to buy machinery, land and repay loans.
Institutional investors set the cut-off price for their shares, according to which the company issues shares to the general public at a discount of 20% on the price.
The cut-off price is the price at which institutional investors absorb all the primary stocks allocated to them in a bookbuilding process during an IPO.
JMI Hospital Requisite Manufacturing Ltd has a trading and distribution business of other medical instruments.
The company’s factory is located in Gazaria in Munshiganj. More than 500 employees work in the company.
The company had previously applied for an IPO with BSEC. However, in July 2020, the Commission rejected the application because the company failed to meet regulatory requirements.
In addition, the Investment Corporation of Bangladesh (ICB) invested Tk 81 crore as placement share of JMI, which was bought at a premium.
ICB Capital Management and Janata Capital and Investment Limited were the company’s issuing managers.
As of June 30, 2020, the net asset value per share of the company was Tk 27.78 without revaluation and Tk 29.99 with revaluation. The paid-in capital amounts to Tk 90 billion.
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