The book-building process of BF Biosciences’ Initial Public Offer (IPO) has concluded with an oversubscription of 3.40 times, the company said on Thursday.
The IPO received an overwhelming response from institutional investors and high-net worth individuals as the strike price clocked in at Rs 77/share, a max 40% higher than the floor price of Rs55.
BF Biosciences has raised Rs 1.93 billion in total, making it the first Pharma sector IPO in 2024.
Several brokerages had had issued almost unanimous calls to ‘subscribe,’ which resulted in investor demand amounting to Rs 4.7 billion against the IPO’s book-building size of Rs 1.375 billion.
The general public will subscribe to 6.25 million shares (25 percent of the total offer size) on October 2nd and 3rd at the strike price of Rs 77.
Farhan Rafiq, COO BF Biosciences in his message thanked investors for their overwhelming response and vowed to ensure growth of their shareholders’ equity.
This strategic initiative is expected to drive significant growth in both the company’s top line and profitability as company has already completed a brownfield expansion and IPO will also help the company to manage working capital needs of the aforesaid expansion.
Shahid Ali, CEO Arif Habib Limited, the lead manager and book runner to the issue said that IPO of BF Biosciences received an exceptional response, with an impressive participation of Rs. 4.7 billion. This marks a significant milestone, as it has been a considerable time since an IPO has garnered such overwhelming interest, achieving an oversubscription of 3.4 times and a premium of 40% over its floor price.