Techno Drugs Ltd plans to raise Tk100 crore through an initial public offering (IPO) under the book-building system.
According to company sources, they intend to allocate Tk25 crore for upgrading and renovating their Narsingdi factory, Tk15 crore for construction works at its factory in BK Bari, Gazipur, Tk27 crore for machinery procurement, Tk30 crore for loan repayment, and Tk3 crore to cover IPO expenses.
In Bangladesh, when a company wants a premium, institutional investors set a reference price for the shares through bidding and general investors will be able to purchase the primary shares at a discount rate.
As per the book-building criteria, Techno Drugs will arrange a roadshow on 14 October in Dhaka, where it will introduce the company to institutional investors.
Institutional investors including merchant bankers, portfolio managers, asset managers, mutual funds and collective investment schemes and stock dealers will take part in the roadshow.
EBL Investments Ltd and Imperial Capital are acting as issue managers for the company, while BMSL Investment Ltd is the registrar to the issue.
According to the company’s financial report 2022-23 FY, the drug manufacturer made a revenue of Tk273.35 crore which was Tk502.85 crore in the same period of the previous year. Its net profit after tax stood at Tk19.55 crore, which was Tk47.98 crore a year earlier.
In the 2022-23 FY, its earnings per share was Tk2.08 which was Tk5.10 in the previous year.
Its net asset value per share with revaluation was Tk27.74, and Tk22.57 without revaluation at the end of June 2023.
The company, one of the fastest-growing drug makers in the country, started its journey in 1996 with the manufacturing of essential veterinary medicine which was not available locally at that time.
It has prioritised the availability of locally manufactured, high-quality medicines, leading to steady growth in the market. With the increasing number of cancer patients in Bangladesh and dependency on imported oncology medicines, the company started production of anti-cancer medicines for the first time in the country in 2010.
Within a very short period, Techno Drugs Ltd won the healthcare market through quality products, strong distribution channels, and doctor-patient acceptance.
Techno Drugs Ltd began by introducing a significant number of anti-cancer molecules to the Bangladeshi market. In 2015, to meet the increased demand, the company established its state-of-the-art factory in BK Bari, Gazipur.
The company is also a major manufacturer of hormonal medicines, the biggest injectable hormonal medicine supplier to the government, and the fifth contraceptive implant manufacturer in the world and the first of its kind in Bangladesh.