April 7, 2021 (MLN): Citi Pharma Limited (CPL) has applied for a listing on the Pakistan Stock Exchange (PSX).
As per the notice issued by PSX, the Company shall be issuing 72,692,000 Ordinary Shares (35% of the total post-IPO paid-up capital of Citi Pharma Limited) of the face value of PKR 10/-each.
The entire issue will be offered through Book Building at a Floor Price of PKR 28/-per share (including premium of PKR 18/-per share) with a maximum price band of up to40%.
The bidders shall be allowed to place bids for a hundred percent (100%) of the Issue size and the Strike Price shall be the price at which the hundred percent (100%) of the Issue is subscribed.
However, the successful bidders shall be provisionally allotted only seventy-five percent (75%) of the Issue size i.e. 54,519,000shares, and the remaining twenty-five percent (25%) i.e. 18,173,000shares shall be offered to the retail investors. In case the retail portion of the Issue remains unsubscribed; the unsubscribed shares will be allotted to the successful bidders on pro-rata basis.
The principal purpose of the issue is to undertake expansion in the API and Healthcare segments.
In the API segment, amid a surge in demand for Paracetamol, Citi Pharma intends to expand its existing capacity of 3,600 tons per annum of Paracetamol to 6,000 tons per annum. Further to this, CPL plans to add new APIs to its existing product line, i.e. (i) Ascorbic Acid, (ii) Chloroquine Phosphate, and (iii) Hydroxyl Chloroquine Sulfate; subsequently, these will also add formulation products of the same to the Company’s portfolio.
Similarly, in the Healthcare segment, the Company in phase-1 plans to build a 50-bed state-of-the-art healthcare facility at main Gulberg III, Lahore, as part of CPL’s goal to create synergies and forward integration.
For this purpose, the company has already acquired a 4-Kanal plot at Hali Road, Lahore for consideration of the price of PKR 264.2 million. As part of the plan, the hospital facility will cater to the segments include Out Patient Department (OPD) –Consultancy Clinics, General Operations, and Diagnostic Services (i.e., X-rays, Laboratory, MRI/CT scan).
As per the notice, Topline Securities is the Lead Manager and Book Runner for the Issue and Faysal Bank Limited is the banker to the Book Building portion of the Issue.
The draft prospectus of the company was placed on PSX's website. ‘All concerned are requested to provide their written comments on the Draft Prospectus, if any, to the Listing Department by emailing at comments.draftprospectus@psx.com.pk latest by COB Thursday, April 15, 2021, the notification said.
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