The Straits Times / The Business Times News on AsiaPharm

AsiaPharm float at 28 a share

Apr 28, 2004
The Straits Times

LEADING speciality pharmaceuticals group AsiaPharm is launching its initial public offer (IPO) shares at 28 cents per share to raise $21.4 million in net proceeds.

The company, which registered its prospectus with the Monetary Authority of Singapore yesterday, said the IPO will comprise 105 million shares or 25.75 per cent of AsiaPharm's enlarged share capital.

The offer comprises 85 million new shares and 20 million vendor shares. In total, 10 million shares will be offered by way of public offer and the remaining 95 million by way of placement.

AsiaPharm's shares are priced at a historic price-earnings ratio of 10.3 times per share for the financial year 2003.

The estimated net proceeds of $21.4 million will go towards increasing its commitment towards research and development, financing new equipment and additional product lines, market expansion, repayment of bank loans and working capital.

AsiaPharm focuses on the research, development, production and sale of natural and chemical drugs with new formulations used in the fields of orthopaedics, neurology, gastroenterology and hepatology.

The IPO, which opens today, will close at 12 noon next Monday.