Two cos launch IPOs this month

FE REPORT
With the market situation improving lately, two companies come with their initial public offering (IPOs) this month.
The two companies -- Navana Pharmaceuticals and Chartered Life Insurance -- will launch their IPOs for subscription on September 13 and 25 respectively, officials said.
Navana Pharmaceuticals will raise Tk 750 million under the book-building method while Chartered Life Insurance will collect Tk 150 million under the fixed-price method.
Navana Pharmaceuticals: The IPO of the drug maker will open for subscription on September 13 and continue until September 19.
Navana Pharma received approval for its IPO from the Bangladesh Securities and Exchange Commission (BSEC) on June 8.
Eligible investors took part in the price discovery of the company's IPO shares by bidding for 72 hours from July 4 to July 7, a requirement for going public under the book-building method.
Following the bidding, the cut-off price for each share was fixed at Tk 34.
However, general investors will be able to purchase its IPO shares at a 30 per cent discount on the cut-off price, as per the regulatory approval.
As per present rule, resident Bangladeshis applying for IPO subscription must have a minimum investment of Tk 50,000 in matured listed securities at market price as on September 5 while the investment figure is Tk 100,000 for non-resident Bangladeshi (NRB).
The company will use the IPO proceeds to build a new general manufacturing unit, construction of new utility & engineering buildings, renovation of cephalosporin unit, partial loan repayment and meeting the IPO expenses.
According to the company's financial statements for July 2021 to March 2022, the net asset value (NAV) per share with revaluation stands at Tk 43.53 and NAV per share without revaluation is Tk 19.02.
The earnings per share (EPS) is Tk 2.39 during the period under review and the weighted average EPS for the last five years is Tk 2.51.
Chartered Life Insurance: The IPO of the life insurer will open for subscription on September 25 and continue until September 29, aiming to raise Tk 150 million under the fixed-price method.
The new generation life insurer received approval from the stock market regulator on July 6 for raising the fund. As per the regulatory approval, the life insurer will issue 15 million ordinary shares at a face value of Tk 10 each.
The company will utilise the IPO proceeds for buying government treasury bonds, investing in stock market and bearing the IPO expenses.
As per the actuarial valuation report for the year ended on December 31, 2021, the company's total life fund grew to nearly Tk 352.17 million and total surplus was Tk 46.75 million.
Incorporated in July 2013, Chartered Life Insurance is engaged in a wide variety of insurance products such as individual life insurance policy and group life insurance policy.
Currently, the company's paid-up capital is Tk 225 million and authorized capital is Tk 2.50 billion, according to its website.
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