Each general investor received 86 initial public offering (IPO) shares of Asiatic Laboratories, while non-resident Bangladeshis (NRBs) got 143 shares against a deposit of Tk 10,000.
The Dhaka Stock Exchange (DSE) on Thursday allocated the IPO shares of the drug maker on a pro-rata basis, which ensures proportionate share distribution to every applicant.
The IPO subscription was held between February 4 and February 8 to raise Tk 950 million from the primary market under the book-building method.
The IPO was oversubscribed as it received more than Tk 3.95 billion against shares worth Tk 950 million, the DSE said in a statement issued on Thursday.
The drug marker received approval from the Bangladesh Securities and Exchange Commission (BSEC) in August 2022 to determine the cut-off price through bidding by eligible investors - a requirement for going public under the book-building method.
The cut-off price of the shares of the company was fixed at Tk 50 each. General investors, including NRBs, however, got shares at Tk 20 each at a 60 per cent discount on the cut-off price, as per the rule set by the stock market regulator.
Earlier, the BSEC said while approving the IPO proposal that general investors would get IPO shares at 30 per cent discount on the cut-off price or Tk 20 each share, whichever is lower.
The company's IPO subscription was supposed to be held on January 16-22 last year. But the securities regulator suspended the IPO subscription just one day before the beginning of the subscription over the allegations of over-valuation of company assets and false land ownership.
The BSEC then formed a probe committee to investigate the matter, and found some anomalies in its financial statements submitted to the regulator.
Following the probe body findings, the stock market regulator imposed a penalty on directors and the issue manager of Tk 5 million each and managing director, chief financial officer and company secretary of Tk 2.50 million each for violations of securities laws.
Almost a year later, the regulator finally lifted the suspension order in November last year on receiving the payments of the penalty.
Asiatic Laboratories will utilize the IPO proceeds for construction of production buildings, repayment of bank loans and IPO expenses.
Having started commercial operation in 2000, Asiatic Laboratories is engaged in the production and marketing of more than 80 generic molecules in the form of tablets, capsules, syrups, creams, eye care products, and injections.
At present, the company produces 6 million tablets, 5 million capsules, 2 million injections, 1.5 million tube creams, and 1.6 million bottles of syrup every year.
Shahjalal Equity Management is working as issue manager.
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