Asiatic Laboratories Limited is poised to mark its debut on both the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) this Wednesday. The pharmaceutical company successfully garnered Tk95 million from the stock market through an initial public offering (IPO) utilizing the book-building method.
During the IPO, general investors secured 86 shares, while non-resident Bangladeshis were allotted 143 shares against a Tk10,000 deposit. The Bangladesh Securities and Exchange Commission (BSEC) granted the company the authority to set the cut-off price for its shares in August 2022. Subsequently, eligible investors established the cut-off price at Tk50 each, adhering to BSEC regulations that allowed general investors to purchase the shares at Tk20.
However, in January 2023, the BSEC temporarily suspended the IPO subscription due to allegations involving false land ownership, inaccurate financial reporting, and fraudulent claims of share money deposits. Following proven violations of securities laws, the commission imposed a Tk50 lakh fine on each director and the issue manager in October.
In a significant turn of events, the BSEC lifted the suspension on its IPO subscription in November of the same year. Asiatic Laboratories, undeterred by the temporary setback, plans to utilize the funds raised for the initiation of anticancer drug production.
According to the financials disclosed on the stock exchange’s website as of Tuesday, the company’s profit after tax stood at Tk26.85 crore, with a basic earnings per share (EPS) of Tk3.06 at the conclusion of FY22. Comparatively, in FY21, the profit after tax was Tk32.05 crore, and the basic EPS was Tk3.65. The impending market debut is anticipated to provide a platform for the company to further its endeavors in the pharmaceutical sector.
