The bidding for eligible investors (EIs) to explore the cut-off price of IPO shares of Navana Pharmaceuticals will begin on July 4 (Monday), aiming to raise Tk 750 million under the book-building method.
The bidding – a requirement for going public under the book-building method – will continue until 5:00 pm on July 7, according to a filing with the Dhaka Stock Exchange (DSE) on Wednesday.
Earlier, Navana Pharmaceuticals received the regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on June 8 this year for raising Tk 750 million by issuing IPO shares under the book-building method.
Each eligible (EI) investor who intends to submit application should maintain a minimum investment of Tk 30 million at market price in matured listed securities as of June 26 while the amount would have to be Tk 15 million for pension funds, recognised provident funds and gratuity funds.
The minimum bidding value shall be Tk 2.0 million which is in accordance with the aforesaid consent letter to Navana Pharmaceuticals dated June 19.
The Central Depository Bangladesh Ltd (CDBL) shall send a report to the stock exchanges regarding the holding of EIs in listed securities and the exchange shall ensure compliance in this regard.
The company will use the IPO proceeds to build new general manufacturing building, construction of new utility and engineering buildings, renovation of cephalosporin unit, partial loan repayment and meeting the IPO expenses.
According to the company’s financial statements for the period July 1, 2021, to March 31, 2022 (nine months), 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) was Tk 2.39 during the period under review and the weighted average EPS for the last five years was Tk 2.51.
Navana Pharmaceuticals will issue shares to general investors at a 30-per cent discount on cut-off price set by the eligible investors through bidding, as per the BSEC approval.
Asian Tiger Capital Partners Investments and EBL Investments are jointly working as issue manager of the company’s IPO.