KARACHI: The public subscription part of Citi Pharma Limited’s public offering has been oversubscribed by 1.6 times, Topline Securities Limited, the managers of the IPO said.

“It is definitely oversubscribed by 1.6 times,” said Muhammad Saad Abdullah, research analyst and manager to the Initial Public Offering of Citi Pharma shares. “The official number will be released in a few minutes.”

After attracting around Rs2.8 billion by offering a 35 per cent stake to institutional and ordinary investors in an initial public offer (IPO), Pakistan-based Citi Pharma offered shares to retail investors at the end of last week.

The book-building phase of the IPO was held on June 15-16, where high net worth individuals and financial institutions participated. The public subscription for the retail portion for the IPO is scheduled to be held on June 23 and June 24. People interested in retail investments are advised to register for the IPO through the E-IPO platform.

Although the company makes many drugs for consumers, its primary source of revenue is the manufacturing and sale of active pharmaceutical ingredients (APIs) — key substances that make a finished pharmaceutical product. Major drug makers like GlaxoSmithKline, The Searle Company, Barret Hodgson and Martin Dow buy their APIs from Citi Pharma. In particular, Citi Pharma sells paracetamol, an API used in painkillers, to GlaxoSmithKline that mixes it with other chemical salts and sells under the renowned brand of Panadol.

Citi Pharma is raising new funds as the company plans to expand its existing capacity of 3,600 tonnes per annum of paracetamol to 6,000 tons per annum, partly because the demand for paracetamol has increased surged in the wake of Covid-19. Furthermore, the company plans to add new APIs and pharmaceutical formulations (final products) to its existing product line.

The writer is a member of staff
The reporting desk can be reached at info@thecorrespondent.com.pk

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