Pharmaceutical manufacturer Techno Drugs Limited has commenced trading on the Dhaka Stock Exchange (DSE) today, Sunday, July 14, following its initial public offering (IPO) under the book building method. This information was confirmed by DSE sources.
Listed under the Pharmaceuticals and Chemicals sector, Techno Drugs’ trading code on the DSE is ‘TECHNODRUGS,’ and the company code is 18499.
The company’s shares began trading at Tk26.40 each.
Techno Drugs raised Tk1 billion through its IPO, with a total subscription of Tk24.87 billion . Of this, Tk24.12 billion came from general investors, and Tk611.75 million from eligible investors.
The IPO subscription period ran from June 9 to June 13. The company set the cut-off price at TK34 per share, with shares being offered to investors at a 30% discount, or Tk24 per share.
Shares were allocated to IPO applicants on July 2, 2024, with more applications received than available shares, resulting in a proportional allocation. Domestic investors who applied for shares worth Tk10,000 received 11 shares each, while those who applied for shares worth Tk1 million received 1,166 shares each.
In contrast, expatriate Bangladeshi investors received 20 shares for every Tk10,000 applied for, and 2,016 shares for every Tk1 million applied for.
The company plans to use the IPO proceeds to purchase new machinery, for BMRE (Balancing, Modernization, Rehabilitation, and Expansion) at its Narsingdi factory, construct a building at its Gazipur factory, partially repay loans, and cover issue management costs.
According to the audited financial statements for the fiscal year ending June 30, 2023, the company’s net asset value per share (NAVPS) was Tk27.74 , including revaluation, and Tk22.57, excluding revaluation.
For the fiscal year in question, Techno Drugs reported earnings per share (EPS) of Tk2.08 , with a weighted average EPS of Tk3.25 over the past five years.
Imperial Capital Limited and EBL Investments Limited are managing the IPO issue.
