February 22, 2021 (MLN): Citi Pharma Limited, a major raw material supplier of GlaxoSmithKline Pakistan and Abbott Laboratories, is all set to hold the second IPO of 2021 in Pakistan, wherein the company is planning to raise up to Rs. 2.85 billion by way of issuing 72.7 million shares at Rs. 28 per share with an upper limit of 40%, within the next six weeks.
The IPO is being considered as one of the largest that the country has ever witnessed by a pharma company, with expectations that it will surpass the record Rs. 2.8 billion raised by AGP Limited in 2017, as per the data compiled by Bloomberg.
The purpose of the IPO is to build a 50-bed hospital in Lahore. The balance will be used to help construct two new plants, which will start operations by the end of this year, the Finance Director of the Company, Amir Zia, told Bloomberg.
This will allow the company to not only manufacture branded drugs but also make medicines for other companies. Moreover, the company will be able to produce over 10 million tablets and capsules a day.
Financially, the company has been performing quite well as its revenue has increased by 36% annually on average, whereas gross margins have remained consistent at 13% in the last five years.
With the company successfully implementing its expansion plan, the revenue of the company may increase more than three times to 12 billion rupees by the year ending June 2023, the Finance Director of the company added.
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