Navana Pharma’s IPO share bidding opens Monday

The bidding for eligible investors to determine the cut-off price of IPO shares of Navana Pharmaceuticals will begin today.

Navana Pharmaceuticals will raise Tk 75 crore from the capital market through the book-building process in its initial public offering (IPO).

The bidding process will start from 5:00pm on the day and continue till 5:00pm on July 7, according to the Dhaka Stock Exchange (DSE).

On June 8, the Bangladesh Securities and Exchange Commission (BSEC) approved Navana Pharmaceuticals to raise money from the capital market through an initial public offering (IPO) in the book-building method.

Navana Pharmaceuticals will spend the raised money to build new general manufacturing buildings, construction of new utility and engineering buildings, renovation of cephalosporin units, partial loan repayment and issue management costs.

According to the company’s financial statements for the period July 1, 2021 to March 31, 2022 (nine months), the net asset value per share with revaluation is Tk 43.53 and net asset value per share without revaluation is Tk 19.02.

The earnings per share (EPS) during the period under review was Tk 2.39 and the weighted average earnings per share (EPS) for the last 5 years was Tk 2.516.

Navana Pharmaceuticals will issue shares to general investors at a 30 percent discount from the cut-off price.

In addition, the company will issue 15 percent shares to employees and others at a 20 percent premium (maximum bidding limit) on fair value, which will remain locked in for 2 years.

Asian Tiger Capital Partners Investments and EBL Investments are in charge of issue management of the company.

Note that the company will not be able to declare, approve or distribute any kind of dividend before listing in the capital market.