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BSEC approves IPO of Silco Pharma

  • Published at 10:21 pm December 19th, 2018
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File photo of Bangladesh Securities and Exchange Commission Office in Dhaka Syed Zakir Hossain/Dhaka Tribune

The company will utilize the IPO proceeds to purchase capital machinery, delivery vans, and bear IPO expenses

Bangladesh Securities and Exchange Commission (BSEC) has approved the Initial Public Offering (IPO) prospectus of Silco Pharmaceuticals Ltd, aimed at raising Tk30 crore. 

Stock market regulator BSEC approved the IPO at a commission meeting held in Dhaka on Wednesday. BSEC Chairman M Khairul Hossain presided over the meeting, according to a press release.

As per the BSEC approval—under the fixed price method—Silco Pharmaceuticals will offload 30 million ordinary shares for Tk10 each. 

The company will utilize the IPO proceeds to purchase capital machinery, delivery vans, and bear IPO expenses.

According to the financial statement ended on June 30, 2017, the company's Net Asset Value (NAV) per share stood at Tk25.41, while the weighted average of Earnings Per Share (EPS) was Tk1.46. The company’s total paid-up capital before the IPO is Tk64,370,000 which willturn to Tk94,370,000after the IPO. 

City Bank Capital Resources Ltd, EBL Investments Ltd, and Citizen Securities and Investment Ltd will act as the issue manager for the IPO process. Funds collected from the stock market will be implemented within 18 months of receiving the IPO funds.

According to the certificate of commencement, Silco Pharmaceuticals’ officially began commercial operations on January 25, 1995. However, the company commenced its drug manufacturing operations from October 30, 2003 after receiving a licence on October 29, 2003. 

Silco Pharmaceuticals’ factory is located at the BSCIC Industrial Estate in Sylhet. The principal activities of the company are manufacturing, selling and distributing pharmaceutical products throughout Bangladesh.  

Margin trading period enhanced

BSEC also extended the deadline on keeping provision against margin loans by two years to December 2020. The decision will be applicable to stock dealers and brokerage houses.