After a gap of 22 years, a pharmaceutical company has been listed in Pakistan Stock Exchange (PSX). Book building process of AGP Limited, the pharmaceutical company, started today. AGP set a floor price of Rs. 80 per share.
According to listing documents, AGP Limited is offering the sale of 35,000,000 Ordinary Shares at a Floor Price of PKR 80 per share. Higher end investors can bid in book building for AGP shares till 8 February. According to the company posting, actual EPS for CY 16 was Rs 4.41 and EPS Rs 4.31 is expected for CY17.
The floor price of share is on Rs. 5 discount as recently sponsors themselves have bought out shares at Rs 85 per share, depicting immense confidence in the company valuations and growth potential.
AGP Limited has a very strong base in Pharmaceutical manufacturing. The company has exclusive partnership with Mylan, for the manufacturing of a Breast-Cancer drug. This will make it the 2nd largest generic drug manufacturer in the world. AGP Top Brands including Ceclor, Rigix, Osnate are forecast to contribute Rs 1.0 billion each to Revenue in the next 3 years.
The company is targeting a healthy sales growth of 19% per annum for the next 7 years – 5 new product launches in CY16 and 8 new launches in CY17 and targeting launch of 6 new products every year going forward.
The company is currently under expansion and recently entered the high-margin nutraceuticals segment and is in the process of setting-up a new plant. Drug registration for export to Sri Lanka, Kenya, Myanmar and Tajikistan is also underway.
AGP has partnerships with Fortune 500 Pharmaceutical companies and is fully Shariah-Compliant with strong governance. Renowned investors, including USAID, Muller & Phipps and Banks are shareholders in the company.