The cut-off price per share of Navana Pharmaceuticals has been fixed at Tk 34 through electronic bidding by eligible investors.
The eligible investors (EIs) took part in the price discovery of the company’s IPO shares by bidding for 72 hours –July 4 to July 7 -- a requirement for going public under the book-building method.
During the period, 281 eligible investors offered the highest Tk 34 and the lowest Tk 20 to buy the company’s initial public offering (IPO) shares.
The eligible investors, including mutual funds, will buy 25 per cent of the company’s IPO shares at the cut-off price of Tk 34 each.
However, the general investors will be able to purchase its IPO shares at a 30 per cent discount on the cut-off price, per the regulatory approval.
Navana Pharma received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on June 8 for raising Tk 750 million by issuing IPO shares under the book-building method.
The company will use the IPO proceeds to build a new general manufacturing unit, construct utility and engineering buildings, renovate the cephalosporin unit, make partial loan repayment and meet the IPO expenses.
According to the company’s financial statements for nine-month for July 2021 to March 2022, the net asset value (NAV) per share with revaluation is Tk 43.53 and NAV per share without revaluation is Tk 19.02.
The earnings per share (EPS) were Tk 2.39 during the period under review and the weighted average EPS for the last five years was Tk 2.51.
The company will not be allowed to declare, approve or distribute any dividend before listing with the capital market.
Asian Tiger Capital Partners Investments and EBL Investments are jointly working as the issue manager of the company’s IPO.