The cut-off price per share of Navana Pharmaceuticals has been fixed at Tk 34 through electronic bidding by eligible investors.
The eligible investors (EIs) took part in the price discovery of the company's IPO shares by bidding for 72 hours -July 4 to July 7 -- a requirement for going public under the book-building method.
During the period, 281 eligible investors offered the highest Tk 34 and the lowest Tk 20 to buy the company's initial public offering (IPO) shares.
Among them, 263 bidders offered the highest price of Tk 34 each, according to the data from the electronic subscription system (ESS) of the stock exchanges published on Wednesday.
Besides, ten bidders offered Tk 33 each, four bidders Tk 32, two bidders Tk 27, one bidder Tk 25 and another one Tk 20 each to buy the company's shares.
The eligible investors, including mutual funds, will buy 25 per cent of the company's IPO shares at the cut-off price of Tk 34 each.
However, the general investors will be able to purchase its IPO shares at a 30 per cent discount on cut-off price, as per the regulatory approval.
The valuation report submission period for eligible investors through the electronic subscription system started at 10:30am on Tuesday and will continue until 10:30am today (Thursday).
Navana Pharma received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on June 8 for raising Tk 750 million by issuing IPO shares under the book-building method.
This is the first IPO bidding after the stock market regulator raised the requirement of investment to Tk 30 million in the stocks for eligible investors to enjoy a quota in IPO. The BSEC raised the amount on May 23 of this year.
Earlier, the required amount was Tk 10 million for each eligible investor and Tk 5.0 million for pension funds, recognised provident funds and gratuity funds.
The company will use the IPO proceeds to build a new general manufacturing unit, construction of new utility & engineering buildings, renovation of cephalosporin unit, partial loan repayment and meeting the IPO expenses.
According to the company's financial statements in nine month for July 2021 to March 2022, the net asset value (NAV) per share with revaluation is Tk 43.53 and NAV per share without revaluation is Tk 19.02.
The earnings per share (EPS) were Tk 2.39 during the period under review and the weighted average EPS for the last five years was Tk 2.51.
The company will issue 15 per cent shares to its employees and others at a 20 per cent premium (maximum bidding limit) on fair value, which will be locked-in for two years, as per the regulatory approval.
The company will not be allowed to declare, approve or distribute any kind of dividend before listing with the capital market.
Asian Tiger Capital Partners Investments and EBL Investments are jointly working as the issue manager of the company's IPO.
Navana Pharma will be the 33rd listed firm under the 'pharmaceuticals & chemicals' sector on the Dhaka Stock Exchange.
Incorporated in 1986, Navana Pharmaceuticals is mainly involved in the manufacturing and marketing of pharmaceutical products for the local and international markets, according to the company. It has a presence in the animal health and nutrition sectors also.
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