Each general investor will get at least 51 initial public offering (IPO) shares of JMI Hospital Requisite Manufacturing while non-resident Bangladeshi received 58 shares against application of Tk 10,000.
The Dhaka Stock Exchange (DSE) on Sunday allocated the IPO shares of the company under the newly introduced pro-rata basis which allows every applicant to get shares.
Md Abdur Razzaq, JMI Group Chairman, Tarique Amin Bhuiyan, managing director of DSE, and Shahidul Hoque, chief executive officer of Janata Capital & Investment, were present at the function, among others.
The company's IPO subscription was held between February 27 and March 3, which raised Tk 750 million from the capital market under the book-building method.
The company's IPO was oversubscribed by 8.65 times, said the company in a press release.
JMI Hospital Requisite received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on November 16, 2021 for raising the said amount by issuing IPO shares under the book-building method.
The cut-off price of shares of JMI Hospital Requisite fixed at Tk 25 each through electronic bidding by eligible investors held between January 9 and January 12 -- a requirement for going public under the book-building method.
The general investors, including non-resident Bangladeshi, got the company's IPO shares at 20 per cent discount on the cut-off price, meaning the general investor received IPO shares at Tk 20 each, as per the BSEC approval.
The company will utilise the IPO proceeds for purchasing machinery, constructing building, land development, repaying bank loans and bearing the IPO expenses.
As per the company's financial statement for the year ended on June 30, 2020, the weighted average earnings per share (EPS) for the last five years stood at Tk 2.42.
For the same period, the company's net asset value (NAV) per share stood at Tk 27.78 (without revaluation), and the value is Tk 29.99 (with revaluation).
Janata Capital and Investment is working as issue manager of the JMI Hospital Requisite.
As per the BSEC condition, the company will not be able to approve inter-company loans. It will not be able to recommend any dividend, its approval, and distribution before listing with the stock market.
At present, JMI Group has more than 10 companies. JMI Hospital Requisite Manufacturing will be the Group's second listed company after JMI Syringes & Medical Devices.
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