The initial public offering (IPO) subscription of JMI Hospital Requisite Manufacturing will open on February 27, aiming to raise Tk 750 million from the capital market.
The IPO subscription of the medical requisite manufacturer through electronic subscription system (ESS) will be continued until March 3, according to its abridged prospectus published on Wednesday.
Each general public, including non-resident Bangladeshis, should maintain a minimum investment of Tk 20,000 at market price in matured listed securities for applying its IPO.
Minimum and maximum amount allowed for subscription for the general public would be Tk 10,000.
JMI Hospital Requisite received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on November 16, 2021, for raising Tk 750 million under the book-building method.
The eligible investors took part in the price discovery of the company's shares by bidding for 72 hours -January 9 to January 12 -- a requirement for going public under the book-building method.
The cut-off price of shares of JMI Hospital Requisite fixed at Tk 25 each through electronic bidding by eligible investors.
The general investors, including NRBs, will get its IPO shares at 20 per cent discount on the cut-off price, meaning the general investor will get IPO shares at Tk 20 each, as per the BSEC approval.
The company will utilise the IPO fund for the purpose of purchasing machinery, constructing building, land development, repaying bank loans and bearing IPO expenses.
As per the company's financial statement for the year ended on June 30, 2020, the weighted average earnings per share (EPS) for the last five years stood at Tk 2.42.
For the same period, the company's net asset value (NAV) per share stood at Tk 27.78 (without revaluation), and the value is Tk 29.99 (with revaluation).
As per the BSEC condition, the company will not be able to approve inter-company loans. It will not be able to recommend any dividend, its approval, and distribution before listing with the stock market.
Janata Capital and Investment is working as issue manager of the JMI Hospital Requisite.
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