JMI Hospital’s IPO bidding starts Sunday
Earlier, the BSEC approved the company to raise Tk75 crore from the capital market
Price-bidding to fix the share price of JMI Hospital Requisite Manufacturing Limited's initial public offering (IPO) is scheduled to begin at the Dhaka Stock Exchange at 5pm on Sunday.
Based on the book building method, the bidding will continue until 12 January.
Earlier, the modern medical instrument and hospital equipment manufacturer received approval from the Bangladesh Securities and Exchange Commission (BSEC) to raise Tk75 crore from the capital market.
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It will spend the fund for purchasing machinery, land and for loan repayment.
Institutional investors will determine the cut-off price of its shares, after which the company will issue shares to the general public at a 20% discount on the price.
The cut-off price is the price point where institutional investors absorb all the primary shares allocated for them in an IPO under the book building method.
JMI Hospital Requisite Manufacturing Ltd has a trading and distribution business of other medical instruments.
The factory of the company is situated at Gazaria in Munshiganj. More than 500 employees are working in the company.
The company had earlier applied to the BSEC for IPO. But in July 2020, the commission rejected the application as the company failed to comply with the regulatory requirements.
Besides, the Investment Corporation of Bangladesh (ICB) invested Tk81 crore as a placement share of JMI, which was bought at a premium.
ICB Capital Management and Janata Capital and Investment Limited were the issue managers of the company.
As of 30 June 2020, the net asset value per share of the company was Tk27.78 without revaluation and Tk29.99 with revaluation. Its paid-up capital is Tk90 crore.
