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BSEC approves IPO plan of Asiatic Laboratories

The company to raise Tk 950m for business expansion

FE REPORT | September 01, 2022 00:00:00

Asiatic Laboratories Ltd. received the securities regulator's approval to raise a capital of Tk 950 million through initial public offering (IPO) under the book-building method.

The drug maker will use the fund for various purposes, including business expansion, building construction and repayment of loans.

At a meeting on Wednesday, the Bangladesh Securities and Exchange Commission (BSEC) approved the company's proposal to raise money from the capital market.

As per the financial statements of the company for the year ended on June 30, 2021, its net asset value (NAV) per share stood at Tk 56.61 with revaluation, while the value is Tk 35.48 without revaluation.

For the same period, the company's earnings per share (EPS) stood at Tk 3.65 and the weighted average of five years' EPS is Tk 3.21.

As per the BSEC approval, the company's shares will be issued to general investors at 30 per cent discount on cut-off price or Tk 20, whichever is lower.

Asiatic Laboratories will not be allowed to recommend, approve or distribute any kind of dividend before its listing on the stock exchanges, according to the BSEC approval.

At the meeting, the securities regulator also approved the proposal of Al-Arafa Islami Bank Ltd. (AIBL) to issue the 4th AIBL Mudaraba Subordinated Bond worth Tk 5.0 billion.

The bank will issue the bond among institutional investors and high net worth individuals through private placements.

The bank will utilise the fund to strengthen its Tier-2 capital base as per the central bank's instruction.

First Security Islami Capital & Investment is working as the trustee of the bond while UCB Investment and Prime Bank Investment are the lead arranger.

The securities regulator has set a condition that the bond would be listed on the stock exchange's alternative trading board.

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