Two companies, Navana Pharmaceuticals and Chartered Life Insurance, are set to launch their initial public offerings (IPOs) for subscription on September 13 and September 25 respectively.
Navana Pharmaceuticals will raise Tk 75 crore under the bookmaking method while Chartered Life Insurance will raise Tk 15 crore under the fixed price method.
The drugmaker’s IPO will open for subscription on September 13 and will run until September 19.
Navana Pharma received IPO approval from the Bangladesh Securities and Exchange Commission (BSEC) on June 8.
Eligible investors participated in the company’s IPO share price discovery by offering for 72 hours from July 4 to July 7, a requirement to go public under the bookbuilding method.
Following the offering, the closing price of each share was set at Tk 34.
However, general investors will be able to buy its IPO shares at a 30% discount on the limit price, in accordance with regulatory approval.
Under the current rule, resident Bangladeshis applying for IPO subscription must have a minimum investment of Tk 50,000 in listed securities matured at market price on September 5, while the investment figure is Tk 1 lakh for non-resident Bangladeshis (NRB).
The company will use the proceeds from the IPO to build a new general manufacturing unit, construct new utility and engineering buildings, renovate the cephalosporin unit, partially repay the loan and spend the ‘Initial Public Offering.
According to the company’s financial statements from July 2021 to March 2022, the net asset value (NAV) per share with revaluation is Tk 43.53 and the NAV per share without revaluation is Tk 19.02.
Earnings per share (EPS) is Tk 2.39 during the reporting period and the weighted average EPS for the last five years is Tk 2.51.
The life insurer’s IPO will open for subscription on September 25 and will run until September 29, aiming to raise Tk15 crore under the fixed price method.
The new generation life insurer received approval from the stock market regulator on July 6 to raise the fund.
Pursuant to regulatory approval, the life insurer will issue 15 million ordinary shares with a par value of Tk10 each.
The company will use proceeds from the IPO to purchase government treasury bills, invest in the stock market, and bear the expenses of the IPO.
According to the actuarial valuation report for the year ended December 31, 2021, the company’s total life insurance fund grew to nearly Tk 35.2 crore and the total surplus was Tk 4.68 crore .
Incorporated in July 2013, Chartered Life Insurance is engaged in a wide variety of insurance products such as individual life insurance policy and group life insurance policy.
Currently, the paid up capital of the company is Tk 22.5 crore and the authorized capital is Tk 250 crore, according to its website.