Orion Pharma Ltd has submitted its IPO prospectus to the stockmarket regulator, revising its previous listing plan, its issue manager said.
Earlier the pharmaceutical company wanted to be listed through book building method, but now it plans listing through a fixed price method.
Under the revised plan, the company will float four crore ordinary shares of Tk 10 each at an offer price of Tk 100, using the fixed price method.
Previously, under the book building method, its indicative price was fixed at Tk 140 per share.
The fresh IPO (initial public offering) proposal was submitted to the Securities and Exchange Commission recently, said an official of ICB Capital Management, the issue manager.
“The offer price has been revised at Tk 100 considering the asset value of the company and sectoral price-earnings ratio of the stockmarket,” said Nasir Uddin Ahmed, chief executive officer of ICB Capital Management.
The net asset value per share of the company is Tk 63.83, while price-earnings ratio of the pharmaceutical sector on the Dhaka Stock Exchange is around 16, he said.
The SEC, being instructed by the government, suspended the book building method in January this year following a price debacle in share prices.
Later, a high-profile government probe committee on the share market scam recommended modifying the book building rules, instead of scrapping it, as the system is well practised in other countries.
However, at that time analysts, including the probe committee members, alleged that the book building method was misused by many issuer companies in connivance with the regulator, auditors and issue managers.
Since the suspension of the book building method, Orion Pharma has been waiting for the resumption of the system.
The existing paid-up capital of Orion Pharma, which is contributing to human health care of the country by providing quality branded-generic pharmaceuti-cals, is Tk 155 crore.
The historical earnings per share of the company is Tk 40.08, while the weighted average earnings per share is Tk 2.40, Ahmed said.
The IPO proceeds will be used as working capital and for setting up pharmaceutical units to produce antibiotics and cancer medicines.