JMI Hospital IPO subscription opens on 27 February

The subscription of the initial public offering (IPO) of JMI Hospital Requisite Manufacturing Ltd opens on 27 February and continues till 3 March.

Through electronic bidding, institutional investors had earlier fixed the cut-off price at Tk25 for the primary shares of the plastic, rubber and silicon components manufacturer.  

Qualified and institutional investors including mutual funds will buy 25% of the IPO shares at the cut-off price.

While individual investors will be able to purchase the remaining 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.

The company will collect Tk75 crore from investors, primarily for purchasing land and machinery, and for loan repayment.

JMI Hospital Requisite Manufacturing Ltd 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 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.

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.

After listing, it will not be able to approve inter-company loans.

Besides, it can neither recommend nor approve nor distribute any dividend before getting listed on the stock market.