JMI Hospital Requisite, a subsidiary of JMI Group, plans to raise Tk 75 crore from the capital market through initial public offering (IPO) under the book building method.
The medical device manufacturing company held a road show on this issue on 20 October 20 at the Bangabandhu International Conference Centre in the capital. The company presented its ongoing business scenario and future plans to institutional investors at the event.
The company will utilise the fund for the construction of factory buildings, plants, buying machinery and land and repaying bank loans.
At the road show, Abdur Razzak, Managing Director of the company said that the medical device business in the country is expanding with a 12.5 percent annual growth.
JMI manufactures multi-dimensional medical devices both for the local market as well as for export.
If the Bangladesh Securities and Exchange Commission, the capital market regulator, allows the company to launch bidding under the book building method, it will first sell a certain number of shares to institutional investors and later to the general public. The company will issue enough shares to raise the fund.
The company started operations in 2013 in the Gazaria area of Munshiganj. The current paid-up capital of the company is Tk 90 crore. In the last five years (2015-2019), the company’s annual turnover increased from Tk 60 crore to Tk 130 crore. The company’s net profit increased by 500 percent from Tk 3 crore to Tk 18 crore in this same period.
In the last financial year that ended on June 30 this year, the company’s earnings per share year stood at Tk 2.05.
Based on information from Fitch Solution, a UK-based market surveyor company, the market outlay of the medical device sector in Bangladesh will reach at Tk 4000 crore by 2022.
However, the medical device sector in the country is mostly import oriented. Ninety percent of local demand is met through imports from China and Malaysia.
JMI Hospital Requisite Manufacturing Ltd. is a leading manufacturer of Plastic, Rubber & Silicon components for medical applications worldwide. The company produces very high quality components for medical devices maintaining clean room environment.
The company was established as a joint venture company with efforts & technical know-how brought from Korea (Sun-Myung International Inc.) to produce supreme quality products.