Searle Pakistan looks to raise Rs3.24bn through IPO

Searle Pakistan Limited (SPL), formerly OBS Pakistan Pvt Limited and a subsidiary of The Searle Company Limited (TSCL), intends to raise over Rs3.24 billion or $14.45 million through an Initial Public Offering (IPO).

The development was shared by the Pakistan Stock Exchange (PSX) through a prospectus provided to the bourse on Thursday.

“It is informed that Searle Pakistan Limited has applied for listing on the Exchange,” said the PSX in its notice.

As per the pharma company’s prospectus, the issue comprises 240,462,134 ordinary shares of face value Rs10 each, which constitute 17.22% of the total post-IPO paid-up capital of the company.

The entire issue will be offered through the book-building process at a floor price of Rs13.5 per share. The total capital to be raised at floor price amounts to Rs3,246,238,809, the prospectus said.

As per the company, initially, 75% of the issue size i.e., 180,346,634 ordinary shares will be allotted to successful bidders and 25% of the issue i.e., 60,115,500 ordinary shares will be offered to retail investors.

“Unsubscribed shares, if any, of the general subscription portion will be allocated to successful bidders of the book building portion on a pro-rata basis,” it said.

Searle Pakistan said the proceeds raised through the IPO would be utilised to set up “Option 1: a new pharmaceutical manufacturing facility in Lahore, capable of producing high quality Intravenous (IV), Ophthalmology, Dermatology and other Oral Solid Dosage (OSD) products.

“Option 2: In order to optimally utilize the IPO proceeds, the company may opt to implement the project through buyout of the local IV manufacturing facility in the country," it added.

SPL is in the business of importing, manufacturing, marketing and sales of pharmaceutical products with a strong presence in Pakistan and Sri Lanka. The company says it has developed expertise in major health segments like cardiology, neuropsychiatry, anti-infective, gastroenterology, gynecology, ophthalmology, pulmonology, endocrinology, vaccines and bone disorders.

In June last year, Citi Pharma’s IPO concluded with an oversubscription of 2 times. The company raised Rs2.32 billion, making it only the second IPO from the pharmaceutical sector in 23 years.