BF Biosciences has announced plans to raise up to Rs1.93 billion by selling stakes at the Pakistan Stock Exchange (PSX) in late September 2024. The biotech firm claims to have become Pakistan's top biotech pharmaceutical company following a Rs4 billion upgrade to its production plant.
The equity will be raised through a book-building process on September 25-26, targeting institutional and high-net-worth investors. The company aims to use the funds to expand its footprint into certified export markets, with a goal of generating $12 million in revenue by the fifth year. The firm plans to export medicines treating diseases such as diabetes, hepatitis C, cancer, and cardiovascular conditions.
Farhan Rafiq, Chief Operating Officer of BF Biosciences, shared at a pre-IPO roadshow that the company expects an additional Rs1 billion in revenue from exports in the first year, focusing on markets in Central America, Africa, and Afghanistan.
The company will offer 25 million shares at a minimum price of Rs55 per share, which may rise to Rs77 during the Dutch auction process. The potential range of funds raised is Rs1.38 billion to Rs1.93 billion.
BF Biosciences is a joint venture between Ferozsons Laboratories Ltd and Argentina's Bago Group, holding 80% and 20% stakes, respectively. Rafiq highlighted that the firm recently completed a Rs4 billion brownfield expansion, originally budgeted at Rs3 billion but impacted by the Russia-Ukraine war.
Arif Habib Limited is the lead manager and book runner for the issue. CEO Shahid Ali Habib stated that the funds will be used to expand key product lines and secure export certifications, driving growth in revenue and profitability.
Once the IPO is fully subscribed, the shareholdings of Ferozsons and Bago Group will reduce to 57.36% and 14.34%, respectively.
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