The bidding for eligible investors (EIs) to explore the cut-off price of IPO shares of Navana Pharmaceuticals will begin tomorrow (Monday), aiming to raise Tk 750 million under the book-building method.
The bidding - a requirement for going public under the book-building method - will continue through the electronic subscription system until 5:00pm on July 7, according to a filing with the Dhaka Stock Exchange website.
The valuation report submission period for eligible investors through the electronic subscription system will start at 10:30am on July 12 and continue until 10:30am on July 14.
As the drug maker is seeking premium over its face value, it will fix a cut-off price by electronic bidding among eligible investors.
The minimum bidding value shall be Tk 2.0 million which is in accordance with the consent letter to Navana Pharmaceuticals dated on June 19, said the disclosure.
Besides, all the interested bidders are requested to submit value of ordinary share of Navana Pharma at a nearest round-down integer while bidding at 1.2 times higher than the determined fair value.
Navana Pharmaceuticals 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.
Each eligible (EI) investor who intends to submit an application should maintain a minimum investment of Tk 30 million at market price in matured listed securities as on June 26 while the amount would have to be Tk 15 million for pension funds, recognised provident funds and gratuity funds.
The Central Depository Bangladesh Ltd (CDBL) shall send a report to the stock exchanges regarding holding of EIs in listed securities and the exchange shall ensure the compliance in this regard.
This is the first company's IPO share bidding after the stock market regulator raised the requirement of investment 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) was Tk 2.39 during the period under review and the weighted average EPS for the last five years was Tk 2.51.
Navana Pharmaceuticals will issue shares to general investors at a 30 per cent discount on cut-off price set by the eligible investors, as per the BSEC approval.
In addition, 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.
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.
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.
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