The cut-off price of initial public offering (IPO) shares of Techno Drugs Ltd has been fixed at Tk 34 each through an electronic bidding process involving eligible investors.
The price was determined during a 72-hour bidding window between April 21 and April 24, as mandated by the book-building method for companies wanting to go public.
During the period, 153 eligible investors offered bids ranging between Tk 15 and Tk 34 each share, according to the data from the electronic subscription system (ESS) released on Monday.
Among them, 143 investors offered Tk 34 per share.
General investors, including non-resident Bangladeshis, will get the IPO shares at a 30 per cent discount on the cut-off price, meaning they will be able to buy IPO shares at Tk 24 each.
Techno Drugs received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on March 7 for raising Tk 1 billion from the primary market.
With the IPO proceeds, the drug maker will purchase new machinery at an expense of Tk 270 million, expand its existing factory in Narsingdi at Tk 250 million, repay Tk 300 million against bank loans and build a new production unit in Gazipur at Tk 150 million. The remaining Tk 30 million is set aside for IPO expenses.
Imperial Capital and EBL Investments are acting as issue manager of the company's IPO process.
Techno Drugs' sales declined 45 per cent year-on-year to Tk 2.73 billion in FY23 while profit plunged 59 per cent to Tk 195.5 million.
Accordingly, the earnings per share stood at Tk 2.08 for FY23, down from Tk 5.10 a year ago. Its net asset value per share with a revaluation surplus was Tk 27.78 while the asset value stands at Tk 22.57 per share without the revaluation surplus as of June 2023.
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