JMI Hospital’s IPO subscription starts February 27

The initial public offering (IPO) application of JMI Hospital Requisite Manufacturing Limited will start on February 27 and will continue till March 3.

JMI Hospital, a medical equipment company, has been approved to raise capital through book building method from the capital market.

According to company sources, only those ordinary investors who have a minimum investment of Tk 20,000 till February 16, only they can apply in the company’s IPO.

Earlier, the bidding of JMI Hospital Requisite Manufacturing Limited was held from 5:00 pm on January 9 to 5:00 pm on January 12.

The Dhaka Stock Exchange (DSE) has set a cut-off price of Tk 25 for each share to eligible investors.

Officials said the shares would be sold to general investors at 20 percent less than the cut-off price in accordance with the rules of the book-building method.

In this case, the company will raise Tk 52.94 crore from the general investors by selling 2,64,70,600 shares at a price of Tk 20.

Bangladesh Securities and Exchange Commission (BSEC) okayed JMI Hospital Requisite Manufacturing Limited to issue shares in the capital market through an initial public offering in a book building method and through this IPO, the company will raise Tk 75 crore from the market.

The money raised from the capital market will be used by the company to pay for infrastructure and other construction, purchase of new machinery and equipment, land development, loan repayment and IPO cost.

According to the audited financial statements for the financial year ended June 30, 2020, the net asset value per share of JMI Hospital Requisite Manufacturing Limited was Tk 29.99, Net asset value without revaluation was Tk 27.78 and in the last five years, the weighted average earnings per share of the company was Tk 2.42.

Janata Capital and Investment Limited is acting as the issue manager of the company.