Techno Drugs to make share trading debut on 14 July

Techno Drugs, a newly listed pharmaceutical company, is set to debut its shares on the main boards of Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) on 14 July under the pharmaceuticals and chemicals sector.

The trading code of its shares will be TECHNODRUG under the “N” (new) category, according to disclosures published on the website of both stock exchanges today (11 July).

The pharmaceutical company raised Tk100 crore from the stock market through an initial public offering (IPO) under the book-building method for business expansion. 

In the IPO, investors received 11 shares for every Tk10,000 applied, 117 shares for every Tk1 lakh applied, and 1,170 shares for up to Tk10 lakh applied. 

However, non-resident Bangladeshis (NRBs) received slightly more shares in the company’s IPO, with 20 shares allocated for every Tk10,000 applied and 2,160 shares for up to Tk10 lakh applied, according to a source at the Dhaka Stock Exchange.

Techno Drugs received applications amounting to approximately 25 times the shares allocated to general investors. The cut-off price of shares was fixed at Tk34 in the electronic bidding by eligible investors.

However, individual or general investors received the company’s shares at a 30% discount, bringing the price to Tk24 per share.

In March, the Bangladesh Securities and Exchange Commission (BSEC) gave approval to Techno Drugs to raise Tk100 crore. 

The drug maker will use this fund for purchasing machinery, balancing, modernisation, rehabilitation, expansion (BMRE) of its Narsingdi factory, construction projects at its Gazipur facility, and repayment of loans.

Techno Drugs started its journey in 1996 with the manufacturing of essential veterinary medicine which was not available locally at that time. 

Over the years, the company diversified its portfolio, becoming a major player in anti-cancer and hormonal medicines. 

In 2010, to address the market gap and dependency on imported oncology medicines, the company began producing anti-cancer medicines for the first time in the country. 

In 2015, it established a state-of-the-art factory in BK Bari, Gazipur to meet increased demand.

Techno Drugs is also the biggest injectable hormonal medicine supplier to the government, the fifth contraceptive implant manufacturer in the world and the first of its kind in Bangladesh, according to the company.