ACTIVE FINE CHEMICALS IPO APPROVED

Star Business Report
 
At yesterday's meeting, the SEC also gave a go-ahead to Active Fine Chemicals Ltd, a chemical reagent and active pharmaceutical ingredients (API) maker, to raise Tk 16 crore from stockmarket.
Active Fine Chemicals will float 1.6 crore ordinary shares of Tk 10 each to raise the funds, which the company said will strengthen its foothold in a sector that is now heavily dependent on imports.
It will also use a portion of the money to pay off bank loans that it took against its project established in 2004 on 10 acres of land in Munshiganj. The company will pay off Tk 6.55 crore bank loans, while the rest of the amount will be added to the working capital structure for business expansion and for IPO (initial public offering) expenditure.
The company's existing paid-up capital is Tk 24 crore, of which Tk 4 crore was raised through private placement.
As of December 2009, the company's earnings per share (EPS) were Tk 0.51 on net turnover of Tk 2.25 crore. The EPS has been projected to reach Tk 2.30 by the year-end.
As of December 2009, the company's net asset value (NAV) per share was Tk 11.57.
Janata Bank is the issue manager of Active Fine Chemicals IPO.
At present, 20 pharmaceuticals and chemicals companies are listed on the stockmarket.