JMI Hospital’s IPO bidding begins on 9 January

Price-bidding based on the book building method to fix the share price of JMI Hospital Requisite Manufacturing Ltd's initial public offering (IPO) will begin at 5 pm on 9 January and continue till 5 pm on 12 January at the Dhaka Stock Exchange. 

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. It will spend the fund on purchasing machinery and land and use it for loan repayment.

Institutional investors will determine the cut-off price of its shares. After getting the cut-off price, 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.

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 of its issuer company.

On 30 June 2020, the net asset value per share of the company was Tk27.78 without revaluation and Tk29.99 with revaluation. Five years' weighted average earnings per share of the company were Tk2.42. Its paid-up capital is Tk90 crore.

The company will not be able to approve inter-company loans. Besides, the company can neither recommend any dividend nor can approve and distribute it before it gets listed on the stock market.