Navana Pharma IPO price discovery from July 4

Navana Pharmaceuticals Ltd will begin the process to find out the closing price of its shares under the IPO bookmaking method on July 4.

The auction period for eligible investors will continue until July 7, the Dhaka Stock Exchange said in a notice posted on its website yesterday.

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It comes amid criticism of the Bangladesh Securities and Exchange Commission (BSEC) bidding process as eligible investors do not have enough time to bid and win shares. For example, eligible investors had less than 10 seconds to win bids in the event of a JMI Hospitals IPO.

Mohammad Rezaul Karim, a BSEC spokesman, said that until the rules on public offerings are changed, the allocation of shares on a “first come, first served” basis would continue.

An asset manager said that because the BSEC has set the process for valuing a stock, all eligible investors are quoting almost the same price.

“But those who bid first win the shares. The BSEC should distribute the shares among all the highest bidders.”

The valuation report submission period for eligible investors through the exchanges’ electronic subscription system will begin on July 12 and run until July 14.

Eligible investors, namely pension funds, recognized provident funds and gratuity funds, who intend to submit applications must maintain a minimum investment of Tk 1.5 crore. It is Tk 3 crore for other eligible investors.

The minimum bid value will be Tk 20 lakh, the notice states.

Navana Pharmaceuticals plans to raise 75 crore of Tk through IPO.

The company’s net profit after tax was Tk 19.18 crore and earnings per share was Tk 2.39 for the July-March period of the current financial year.

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