Asiatic Laboratories stock debuts Wednesday

Asiatic Laboratories Limited is set to make its debut on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) on Wednesday.

The drugmaker has raised Tk95 million from the stock market through an initial public offering (IPO) under the book building method.

General investors were allotted 86 shares in the IPO, while non-resident Bangladeshis received 143 shares against a Tk10,000 deposit.

In August 2022, the Bangladesh Securities and Exchange Commission (BSEC) allowed the company to determine the cut-off price of its shares.

The cut-off price was fixed at Tk50 each by eligible investors, and general investors were entitled to buy the shares at Tk20 as per the rule set by the BSEC.

In January 2023, the market regulator suspended its IPO subscription over allegations of false land ownership, inaccurate financials, and fraudulent reports of share money deposits.

Due to violations of securities laws and proven allegations, the commission imposed a fine of Tk50 lakh on each of its directors and the issue manager in October.

In November last year, the BSEC withdrew the suspension of its IPO subscription.

Asiatic Laboratories plans to use the fund to begin anticancer drug production.

According to its financials published on the stock exchange's website on Tuesday, its profit after tax was Tk26.85 crore, and its basic earnings per share (EPS) was Tk3.06 at the end of FY22. A year ago, in FY21, its profit after tax was Tk32.05 crore, and its basic EPS was Tk3.65.