Asiatic Laboratories, a pharmaceutical company, plans to go public using the book-building method with a view to raising Tk 950 million for the purpose of business expansion.
The drug maker will hold a road show for institutional investors at Radisson Blu Water Garden in Dhaka at 7:00pm tomorrow (Sunday) to this end.
Eligible investors such as merchant bankers and portfolio managers, asset managers, stock dealers, banks, financial institutions, insurance companies, alternative investment funds, foreign investors and other institutions approved by the securities regulator are expected to join the event.
A road show is a requirement under the book-building regulations before the price discovery of a company's shares.
The book building is a process through which an issuer attempts to determine the price to offer for its security based on demand from institutional investors.
The price of an initial public offering (IPO) share is determined through automated bidding joined by financial institutions. The shares are then opened for the IPO participants at the cut-off price.
The IPO proceeds will be spent on implementing new projects on its existing factory premises in Gazipur, officials said.
Shahjalal Equity Management Ltd. is the issue manager of the company's IPO process while BMSL Investment Ltd is the registrar to the issue.
The issue manager will display the company's fundamentals to the eligible institutional investors at the road show.
Businessman Minhaz Uddin Ahmed started the company in 1970. But after 26 years, he sold it to Monir Ahmed and Tahmina Begum.
Under the new owner, the drug maker started its marketing operation in 2000 and launched 80 generic molecules comprising therapeutic classes like antibiotics, antihistamines, bronchodilators, vitamins-minerals etc.
Meanwhile, Islam Oxygen Ltd will also hold a road show on October 25 (Monday) as part of its plan to go public under the book-building method.
The oxygen manufacturer and supplier wants to raise Tk 930 million from the capital market for business expansion.
The road show for institutional investors will be held at Radisson Blu Water Garden in Dhaka at 7:00pm.
Janata Capital & Investment Ltd is working as the company's issue manager while Sonali Investment Ltd is the registrar to the issue.
The company is engaged in manufacturing and supplying medical, industrial, and laboratory gases. Its manufacturing plant is located in Narayanganj's Tarabo area.
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