Pakistan’s pharmaceutical company BF Biosciences Limited (BFBL) is planning an initial public offering (IPO) at the Pakistan Stock Exchange (PSX) with an aim to raise at least Rs1.375 billion ($4.94 million) through the issuance of 25 million shares at a floor price of Rs55 per share.
Brokerage house Arif Habib Limited has been appointed as lead manager/consultant to the issue by the issuer, read the company’s prospectus issued by the PSX on Wednesday.
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BFBL plans to sell 25 million ordinary shares, which constitutes 28.3% of the total post-IPO paid up capital of the company.
“This entire issue will be offered through the 100% book building process at a floor price of Rs55/- per share (including premium of Rs52/- per share) with a maximum price band of up to 40%.”
The document read that initially, 75% of the issue size i.e., 18,750,000 ordinary shares will be allotted to successful bidders and the remaining issue i.e., 6,250,000 ordinary shares will be offered to retail investors.
“Unsubscribed shares, if any, of the general subscription portion will be allocated to successful bidders of the book building portion on a pro-rata basis,” it said.
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As per the document, the IPO proceeds “will primarily be used to purchase plant and machinery to expand the product range and improve efficiency, acquire export certifications such as PIC/S and SRA and new product development including Glucagon-like Peptide (GLP1) and finance working capital requirements for purchase of raw and packing materials to meet post-expansion working capital needs”.
BFBL is a joint venture between Ferozsons Laboratories Limited and the Bagó Group of Argentina. The company’s core operations involve the import, manufacturing, marketing and distribution of pharmaceutical products.
The company is a pioneer in local manufacturing of hepatitis related medicines (i.e. interferon injections).
In 2020, BFBL executed a non-exclusive license agreement with Gilead Sciences, Inc. for the manufacture and sale of Remdesivir (an anti-viral drug for the treatment of COVID-19 patients) under Gilead’s Global Patient Solutions (GPS) Program.
The company successfully manufactured Remdesivir during COVID-19, which contributed approximately Rs.2 billion in topline in FY2021 – FY2022.
IPOs in Pakistan are a rare occurrence and less than 20 companies – both on the main and GEM boards – have chosen to list in the last five years, a disappointing figure for the near $350-billion economy.