The Bangladesh Securities and Exchange Commission (BSEC) yesterday approved Asiatic Laboratories Limited to raise Tk95 crore from the capital market with an initial public offering (IPO).
The company wants to use the funds mainly to begin anticancer drug production, according to the company's prospectus.
It will use Tk58.05 crore for acquisition and installation of machinery, Tk6.26 crore for factory construction, and Tk28 crore for repayment of bank loans.
On 30 June 2021, the company's net asset value per share was Tk56.61 with revaluation surplus and Tk35.48 without the surplus.
Its earnings per share (EPS) stood at Tk3.65 and a five year weighted average EPS at Tk3.21.
Asiatic Laboratories was incorporated as a private limited company in July 1970, and started commercial production in 1998. It converted to a Public Limited Company on 12 March, 2020.
Asiatic is engaged in the production and marketing of biological, non-biological, and sterile products such as tablets, capsules, syrups, creams, eye products, injections, and more.
Local pharmaceutical companies have been game changers in the pharma industry catering to around 98% of market demand.
At present, Asiatic Laboratories produces 6 million tablets, 5 million capsules, 2 million injections, 1.5 million tube creams, and 1.6 million bottles of syrup every year.
The company's annual revenues in fiscal 2020-21 grew to Tk145 crore from Tk119.6 crore five years ago.
Local merchant bank Shahjalal Equity Management is the issue manager and BMSL Investments is the registrar for the company's IPO.