Indies Pharma IPO 2.5 times over

Indies Pharma went to the capital market last week Thursday to raise $248.4 million from 174 million shares for its own use while existing shareholders offered 92.5 million units to raise nearly $139 million.
Information reaching IC indicates that the offer that closed on Friday attracted some 2,800 applications, covering over than $1 billion and was about 2.5 times oversubscribed. GK Capital the lead broker pulled in about 50 percent of the inflows, our source indicates. The number of applicants sits just below the amount attracted by Victoria Mutual Investments which was in excess of 3,000.
The shares were mostly priced at $1.50 each with lower prices for shares reserved for selected groups. Only 60 million shares were set aside for the general public. The proceed for the shares sold by the company is expected to be used to pay off loans to its parent company and banks, working capital and funds the cost of the issue. The total issued shares currently amount to 1,158,553,500 units and the issue of 173,983,149 shares, raises the total shares to 1,332,536,649 units.
Indies Pharma is a pharmaceutical distribution company out of Montego Bay, which sold its first pharmaceutical 2005, and today distributes over 150 prescription and over the counter pharmaceutical formulations for Bioprist Holdings under the ‘Bioprist’ brand and operates the Trident Pharmacy located nearby in Sam Sharpe Square, Montego Bay.

The chairman and founder of Indies Pharma

The Company currently services customers across the island, including over 400 pharmacies, private and public hospitals and government agencies including the National Health Fund as well as medical practitioners and directly to individuals.
Investors demand has pushed prices in the post IPO period to peak around 15 times current year’s earnings. On this basis, it seems likely that Indies Pharma will peak around $2.5 based on IC’s projected earnings in 2018, of 17 cents per share, it could go higher with the high level of applicants for the shares.
For the half year to April, revenues rose 10 percent to $301 million over the similar period in 2017 but profit is only up 6 percent to $73 million from $69 million before tax. IC’s forecast is for a 16 percent increase in pretax profit to $200 million for the current year. The company could pick up additional sales and profit as a result of the publicity that emanates from the IPO and subsequent listing.

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