Navana Pharmaceuticals will raise Tk 750 million from the capital market under book building method.
The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday decided to approve the company's proposal for the IPO (initial public offering).
At Wednesday's meeting, the securities regulator also extended ceiling of mandatory investments in listed securities to apply for IPO shares by general investors and non-resident Bangladeshis (NRBs).
As per the BSEC decision, Navana Pharmaceuticals will utilise the IPO fund worth Tk 750 million for the purpose of constructing new buildings, repairing cephalosporin unit, repayment of partial loans and catering issue management cost.
The company has reported its net asset value (NAV) per share of Tk 43.53 (with revaluation reserve) for a period of nine months since July 1, 2021 to March 31, 2022.
For the same period, the company's NAV per share has stood at Tk 19.20 (without revaluation reserve), while the earnings per share (EPS) is Tk 2.39.
The weighted average of the company's EPS for last five years has stood at Tk 2.516. The company will issue the IPO shares of Navana Pharmaceuticals to general investors at 30 per cent discount on cut-off price.
Asian Tiger Capital Partners Investment and EBL Investments are working as the company's issue managers.
As per the existing provision, general investors and the NRBs are required to have a minimum investment worth Tk 20,000 in listed securities to apply for IPO shares.
At Wednesday's meeting, the securities regulator extended the investment ceiling to Tk 50,000 for general investors, other than the NRBs.
On the other hand, the investment ceiling has been extended to Tk 0.1 million for the NBRs.
The investment ceiling has been extended to develop long-term investment habits among general investors along with paving the way of getting IPO shares by genuine investors, according to BSEC officials.
At the Wednesday's meeting, the securities regulator also approved draft prospectus Blue-Wealth 1st Balanced Fund, an open-end mutual fund.
Initial size of the fund is Tk 250 million. As sponsor, the Blue-Wealth Assets has contributed Tk 25 million and the remaining fund will be collected from investors.
The offer price of the units of Blue-Wealth 1st Balanced Fund is Tk 10 each.
The Blue-Wealth Assets is the fund manager while Sandhani Life Insurance Company and BRAC Bank are working as trustee and custodian of the fund respectively.
mufazzal.fe@gmail.com