KARACHI:
BF Biosciences has successfully raised Rs1.93 billion by offering 25 million shares at Rs77 each through a two-day Dutch auction, which concluded on Thursday at the Pakistan Stock Exchange (PSX). The capital will be used to acquire export certificates to expand sales in Central America, Africa, and Afghanistan, increase working capital, and introduce new products, according to sources.
The IPO was oversubscribed by 3.4 times, with total demand reaching Rs4.7 billion during the book-building process. This far exceeded the initial target of Rs1.375 billion. “Several brokerages issued unanimous ‘subscribe’ recommendations, driving investor demand to Rs4.7 billion, significantly surpassing the IPO’s book-building size,” stated a company release.
The bidding began at a floor price of Rs55 per share on Wednesday, and strong interest from institutional and high-net-worth investors pushed the price to Rs77 per share, the maximum allowed 40% increase, reflecting strong market liquidity.
The general public will have a chance to subscribe to 6.25 million shares (25% of the total offer) on October 2-3 at the final strike price of Rs77 per share.
Farhan Rafiq, Chief Operating Officer of BF Biosciences, reaffirmed the company’s commitment to increasing shareholder value. The company has recently completed a brownfield expansion, and the IPO will provide the necessary working capital for this growth.
Shahid Ali, CEO of Arif Habib Limited, the lead manager and book runner for the issue, expressed his satisfaction with the strong response. “The IPO received tremendous interest, raising Rs4.7 billion with an oversubscription of 3.4 times and a 40% premium on the floor price. It’s a significant achievement, especially as it marks one of the most successful IPOs in recent times,” he remarked.
