DSE allocates Techno Drugs IPO shares DSE Chairman Professor Dr. Hafiz Mohammad Hasan Babu allocates Techno Drugs IPO shares under the pro-rata basis on Tuesday at DSE training academy. Shah Jalal Uddin Ahmed, managing director of Techno Drugs, was present among others. Each general investor will get 11 initial public offering (IPO) shares of Techno Drugs, while the non-resident Bangladeshis will receive 20 shares against submission of Tk 10,000.
The Dhaka Stock Exchange (DSE) on Tuesday allocated the IPO shares of the drug maker under the pro-rata basis, which allows every applicant to get shares.
The IPO subscription of Techno Drugs was held between June 10 and 13, which raised Tk 1 billion from the primary market under the book-building method.
The company's IPO shares were oversubscribed by 24.64 times as it received Tk 24.87 billion against the requirement of Tk 1 billion, according to the DSE.
Earlier, the cut-off price of the drug maker's shares was fixed at Tk 34 through electronic bidding by institutional investors between April 21 and April 24 this year.
General investors, including non-resident Bangladeshis, however, are to get shares at a 30 per cent discount on the cut-off price, meaning at Tk 24 each.
Techno Drugs received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on March 7 for raising the fund.
With the IPO proceeds, the drug maker will purchase new machinery at an expense of Tk 270 million, expand its existing factory in Narsingdi at Tk 250 million, repay Tk 300 million against bank loans and build a new production unit in Gazipur at Tk 150 million. The remaining Tk 30 million is set aside for IPO expenses.
Meanwhile, Techno Drugs' sales dropped 45 per cent year-on-year to Tk 2.73 billion in FY23 while net profit plunged 59 per cent to Tk 195.5 million.
Accordingly, the earnings per share (EPS) stood at Tk 2.08 for FY23, down from Tk 5.10 a year ago. Its net asset value (NAV) per share with a revaluation surplus was Tk 27.78 while the NAV stands at Tk 22.57 per share without the surplus as of June 2023.
Imperial Capital and EBL Investments are acting as issue manager of the company's IPO process.
Established in 2009, the drug maker produces human and veterinary medicines and sells them at home and abroad.
Techno Drugs claims that it had pioneered the production of oncology medicines in Bangladesh.
© 2024 - All Rights with The Financial Express
