Citi Pharma raises Rs4.1bln

KARACHI: Citi Pharma has raised Rs4.1 billion against an issue size of Rs2 billion at the floor price in an initial public offering, said the company that held a gong ceremony on Monday.

The issue was oversubscribed by two times. CPL was listed on the stock exchange on 9 July. The book building phase of the IPO was a success with the strike price being discovered at Rs32 per share whereas the floor price was Rs28 per share. A large number of institutional and individual investors, totaling 516 investors, took part in the book building, of which 340 investors became successful participants.

The general public portion of the Issue was oversubscribed by 1.6 times showing tremendous interest by the public. Applications for a total of 28,751,041 ordinary shares against the issue size of 18.1 million ordinary shares were received. Significant number of investors also showed interest in investing in the issue through the EIPO system of Pakistan Stock Exchange. A total of 232 applications for 416,000 shares were filed through the EIPO system.

The issue of CPL consisted of 72.6 million ordinary shares or 35 percent of the total post-IPO paid-up capital. The entire issue was offered through book building method at the floor price of Rs28 per share with a maximum price band of up to 40 percent. Initially, 75 percent of the issue size i.e. 54,519,000 ordinary shares were allotted to successful bidders and 25 percent of the issue size –18.1 million ordinary shares were offered to the retail investors at the strike price. Nadir Rahman, COO of PSX said PSX is very proud of the fact that the first company of the current fiscal year FY22 has already been listed, in the 1st half of July 2021. Rizwan Ahmad Sheikh, CEO of Citi Pharma Limited, said this will take untiring efforts from our side “but we are ready and geared up for the challenge and look forward to aligning with the PSX family and giving the investors a good return on their investment.”

Mohammed Sohail, CEO of Topline Securities Limited, who was the consultants and book runners to the issue said the Listing will help the company sponsors realise their expansion plans and also give investors a new flavor of local entrepreneurial skillset and expertise, which Citi sponsors possess. “This will also add to the float of the pharma sector at the PSX – something investors have been desiring for a long time.”