Asiatic Laboratories' cut-off price fixed at Tk 50

FE REPORT

The cut-off price of Asiatic Laboratories Ltd has been fixed at Tk 50 each through electronic bidding by eligible investors.

Investors took part in the price discovery of the company's shares by bidding for 72 hours - October 10 to October 13 -- a requirement for a company to go public under the book-building method.

During the period, 221 investors offered between Tk 20 and Tk 50 to buy shares. Among them, 161 bidders offered the highest price, Tk 50 per share, according to the data from the electronic subscription system (ESS).

Asiatic Laboratories received consent from the Bangladesh Securities and Exchange Commission (BSEC) on August 31 for raising Tk 950 million by issuing IPO shares.

The company will issue IPO shares to general investors at 30 per cent discount on the cut-off price or Tk 20 each, whichever is lower, as per the BSEC approval.

The drug maker will use the IPO proceeds for business expansion, building construction, repayment of bank loans and bearing IPO expenses.

As per the financial statements of the company, the company's earnings per share (EPS) stood at Tk 3.65.

The company will not be allowed to recommend, approve or distribute any kind of dividend before its listing on the stock exchanges.

Shahjalal Equity Management is working as the issue manager for the IPO.

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