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Navana Pharma's IPO opens Sept 13

The company to raise Tk 750m under book-building method

FE REPORT | August 23, 2022 00:00:00

The initial public offering (IPO) of Navana Pharma-ceuticals is set to open for subscription on September 13, aiming to raise Tk 750 million under the book-building method.

The IPO can be subscribed through the electronic subscription system of the stock exchanges and the subscription period ends on September 19, according to Dhaka Stock Exchange.

Navana Pharmaceuticals received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on June 8 for raising Tk 750 million by issuing shares.

The cut-off price of the company's share was fixed at Tk 34 each through electronic bidding by eligible investors, a requirement for going public under the book-building method.

The eligible investors took part in the price discovery of the company's IPO shares by bidding for 72 hours -- from July 4 to July 7.

The general investors will be able to purchase its IPO shares at a 30 per cent discount on the cut-off price, according to the regulatory approval.

Besides, Navana Pharma is allowed to disburse 15 per cent of IPO shares to its employees with a lock-in period for two years.

This was the first company's IPO after the stock market regulator raised the investment limit to Tk 30 million in the stocks for eligible investors to enjoy a quota in IPO and Tk 15 million for pension funds, recognised provident funds and gratuity funds.

The BSEC raised the amount on May 23 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, construct new buildings, renovate of cephalosporin unit, repay loan and meet the IPO expenses.

According to the company's financial statements for nine months from July 2021 to March 2022, the net asset value (NAV) per share with revaluation stands at Tk 43.53 and the 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 not be allowed to declare, approve or distribute any dividend before its listing on the capital market.

Asian Tiger Capital Partners Investments and EBL Investments are jointly working as the issue manager for the company's IPO.

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