BF Biosciences raises PKR 1.93 billion in oversubscribed IPO

BF Biosciences has raised PKR 1.93 billion ($6.9 million) in total, making it the first pharma sector IPO in 2024.

The book-building process of BF Biosciences’ Initial Public Offer (IPO) concluded with an oversubscription of 3.4 times, the company said on Thursday.

The IPO received an overwhelming response from institutional investors and high-net worth individuals as the strike price clocked in at PKR 77/share, 40% higher than the floor price of PKR 55.

The general public will subscribe to 6.25 million shares (25% of the total offer size) on October 2nd and 3rd at the strike price of PKR 77.

This strategic initiative is expected to drive significant growth in both the company’s top line and profitability as company has already completed a brownfield expansion and IPO will also help the company to manage working capital needs of the aforesaid expansion.

Shahid Ali, CEO Arif Habib Limited, the lead manager and book runner to the issue said that IPO of BF Biosciences received an exceptional response, with an impressive participation of PKR 4.7 billion. This marks a significant milestone, as it has been a considerable time since an IPO has garnered such overwhelming interest, achieving an oversubscription of 3.4 times and a premium of 40% over its floor price.