Techno Drugs, a manufacturer of veterinary and oncology medicines, will raise Tk 1 billion from the primary market for business expansion and loan repayment.
The Bangladesh Securities and Exchange Commission (BSEC) on Thursday approved the company's proposal to float an IPO (initial public offering) under the book building method.
The company will issue shares to eligible investors at the cut-off price to be determined through electronic bidding.
As per the regulatory approval, general investors will get shares at a 30 per cent discount on the cut-off price.
The company has reported its NAV (net asset value) per share with a revaluation surplus of Tk 27.78. The asset value stands at Tk 22.57 per share, without the revaluation surplus, as of June 2023.
For FY23, EPS (earnings per share) was Tk 2.08 and the weighted average EPS for the last five years was Tk 3.25.
Techno Drugs started production of cancer drugs in 2010, witnessing an increase in the demand for such medicines. It also manufactures veterinary medicines.
Imperial Capital and EBL Investments are working as issue managers of Techno Drugs.
As per the regulatory conditions attached to the IPO, the company will not be able to declare, approve and distribute any kind of dividends before the listing on the bourses.
At Thursday's meeting, the BSEC also approved a proposal of MK Footwear to issue 8-year fully redeemable bonds.
The coupon rate of the bonds will be SMART (Six months Moving Average Rate of Treasury Bills) plus 2 per cent margin. The yield will range between 9-11.5 per cent.
Recently, private businesses have been compelled to increase coupon rates of bonds to attract investors amid a rise in the interest rates of Treasury bonds.
MK Footwear will issue bonds to institutions and high net-worth individuals through private placement. The company will utilise the fund as working capital.
Community Bank Investment is the trustee of the bonds while Alpha Capital Management is working as arranger.
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