The initial public offering (IPO) of Asiatic Laboratories will open for subscription tomorrow (Sunday), aiming to raise Tk 950 million from the primary market under the book-building method.
The subscription period ends on February 8, according to Dhaka Stock Exchange.
To subscribe to the company's IPO shares, general investors need a minimum investment of Tk 50,000 in the secondary market, calculated at market prices as of January 25 while the figure for non-resident Bangladeshis is Tk 100,000.
The drug marker received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) in August 2022 to determine the cut-off price of its shares through bidding by eligible investors -- a requirement for going public under the book-building method.
The cut-off price of the shares of the company was fixed at Tk 50 each through the electronic bidding. The general investors would be able to buy the shares at Tk 20, a 60 per cent discount as per the rule set by stock market regulator.
According to the rules, general investors will get IPO shares at 30 per cent discount on the cut-off price or Tk 20 each share, whichever is lower.
The company's IPO subscription was supposed to be held on January 16-22 last year. But the securities regulator suspended the IPO subscription just a day before the start of the subscription over the allegations of 'over valuation' of assets and 'false land ownership'.
The BSEC then formed a probe body to investigate the matter, and found some anomalies in its financial statements submitted to the regulator.
Following the probe body finding, the stock market regulator imposed a penalty on each director, managing director, chief financial officer, and issue manager due to violations of securities laws.
However, the regulator lifted the IPO suspension in November 2023 upon payment of the penalty.
Asiatic Laboratories will utilise the IPO proceeds for business expansion -- construction of production buildings; repay bank loans and IPO expenses.
Asiatic Laboratories, which started commercial operation in 2000, is engaged in the production and marketing of more than 80 generic molecules comprising different types of tablets, capsules, syrups, creams, eye care products, injections, and more.
At present, the company produces 6 million tablets, 5 million capsules, 2 million injections, 1.5 million tube creams, and 1.6 million bottles of syrup every year.
Shahjalal Equity Management is working as the issue manager.
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