JMI Hospital to make stock trading debut on 31 March

JMI Hospital Requisite Manufacturing Limited - a medical equipment manufacturer - will make its share trading debut at the Dhaka Stock Exchange (DSE) on 31 March.

General investors have each received 51 shares through the company's initial public offering (IPO). 

Earlier, through electronic bidding, institutional investors had fixed Tk25 as the cut-off price for each share. But the general investors got the primary shares at Tk20 each - a 20% discount on the cut-off price.

The cut-off price is the price at which institutional investors get all the primary shares set aside for them under the book building method.

On 16 November 2021, the Bangladesh Securities and Exchange Commission (BSEC) allowed the company to collect Tk75 crore from investors, primarily for purchasing land and machinery, and for loan repayment.

Earlier, JMI Hospital had 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.

The BSEC sources said, the Investment Corporation of Bangladesh (ICB) invested Tk81 crore as a placement share in JMI, which was bought at a premium.

But ICB Capital Management Ltd was also the issue manager of the company, along with Janata Capital and Investment Limited.

According to the law, an issue manager cannot hold shares in its issuer company, the source added.

Now, only Janata Capital and Investment Limited is working as the issue manager of the company.

On 30 June 2020, the net asset value per share of the company was Tk27.78 without revaluation and Tk29.99 after revaluation.

Five years' weighted average earnings per share of the company stood at Tk2.42. Its paid-up capital is Tk90 crore.