BF Biosciences plans to sell 28.3% shares in a public offering

BF Biosciences Limited plans to issue 25 million shares, representing 28.3% of its post-IPO paid-up capital, at a floor price of PKR 55.0 per share. The total transaction size will be PKR 1,375 million ($4.9 million) at the floor price and PKR 1,925 million at the cap price of PKR 77.0 per share.

The offering will be conducted through a 100% book-building process, where bidders will place bids for the full issue size. However, only 75% of the shares will be allocated to successful bidders, with the remaining 25% reserved for retail investors. If the retail portion is undersubscribed, the remaining shares will be distributed pro-rata among the successful bidders.

The funds raised from the IPO will be used for:

• Purchasing plant and machinery to expand the product line and improve process efficiencies.
• Acquiring export certifications such as PIC/S and SRA, and developing new products like Glucagon-like Peptide (GLP1).
• Procuring raw and packaging materials to manage working capital needs.

The book-building dates for the IPO are September 25-26, with Arif Habib Limited serving as the lead manager and book runner.

For the first nine months of fiscal year 2024-25, BF Biosciences reported net sales of PKR 2,916 million and a net profit of PKR 314 million, with total assets amounting to PKR 5,882 million. The company has gross margins of 43%, EBITDA margins of 20%, and net margins of 11%.

BF Biosciences is a joint venture between Ferozsons Laboratories Limited and Grupo Empresarial Bagó S.A. The company specializes in the development and manufacture of biotechnology-based pharmaceuticals, particularly in the fields of hepatitis and oncology. Its product range covers therapeutic areas including nephrology, cardiology, gastroenterology, diabetes, oncology, antiviral, and hepatology.