Asiatic Laboratories has got the approval of raising Tk 95 crore funds through an initial public offering (IPO) from the stock market.

Bangladesh Securities and Exchange Commission (BSEC) approved the IPO in a meeting at its office in Dhaka.

Following the approval, the general stock investors will be allowed to get shares of the pharma company after finalising its cut-off price through bidding among all the eligible investors.

With the IPO proceeds, the pharma company will expand its business, build a production building, and repay bank loans.

In the last financial year, the net asset value per share stood at Tk 56.61 and its weighted average earnings per share stood at Tk 3.21, said the BSEC in a press release.

Eligible investors will get shares at their bidding price and a cut-off price would be set from their bidding.

The pharma company would issue shares for general investors at a price which is the lowest among Tk 20, down from the cut-off price or 30 per cent lower from the cut-off price, the BSEC said.