BF Biosciences Book Building Starts Today

BF Biosciences IPO’s book-building phase will be held on 25th and 26th September where high net worth individuals and institutional investors will subscribe to 100 percent of the issue size. BF Biosciences, a leader in the biotech pharmaceuticals sector in Pakistan, is set to raise between Rs. 1.38 and Rs. 1.93 billion to expand its key product lines and obtain export certifications. The floor price for the issue has been set at Rs. 55 per share through a 100 percent book-building process. The unsubscribed shares, if any, of the general subscription portion would be allocated to the successful bidders of the book-building portion on a pro-rata basis. The issuer will utilize any additional funds raised above the floor price to manage its additional requirements for capex and working capital needs. BF Biosciences has estimated that the maximum strike price for the IPO may climb to Rs. 77 per share which would increase the funds raised to Rs. 1.93 billion. This strategic initiative is expected to drive significant growth in both the company’s top line and profitability as the company has already completed a brownfield expansion and the IPO will also help the company to manage the working capital needs of the aforesaid expansion. Arif Habib Limited has been appointed as a lead manager and book runner to the issue.