Jamaica Observer / Indies Pharma Jamaica Limited successfully closed its initial public offering last Friday after being oversubscribed for its offering of 266,507,330 shares. Two days prior to the opening of the IPO, the Montego Bay-based company brought together over 70 potential investors in Kingston to review company prospects for the IPO which was set to open Thursday, July 12 and close on Thursday, July 19.
Indies Pharma shares were issued at $1.50 and allowed the company to raise $387.21 million to continue its rapid growth trajectory. Vice-President of Investment Banking GK Capital Management, Douglas Robinson, reckoned that the stock at $1.50 per share resulted in price earnings multiple going forward 10 times the amount, making the IPO extremely attractive.
A minimum of 1000 shares could be purchased, costing the average investor $1,500. Shares of the company were sold on a first come first serve basis. GK Capital Management has been advising Indies Pharma for the last three years and played dual roles of Lead Arranger and Co-Broker. Sagicor Investments was engaged as Co-Broker.
Indies Pharma was incorporated in December 2003 by the medical doctor Dr Guna Muppuri and his wife Vishnu Muppuri and sold its first third-party pharmaceutical on April 18, 2005. The company transitioned to sale of products under the Bioprist brand in 2010, and two years later acquired Trident Pharmacy.
Currently, the company distributes over 150 prescription and non-prescription or ‘over the counter’ generic pharmaceutical products for Bioprist Holdings Ltd under the Bioprist brand. The company 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 individual end users.
In preparation for listing on the Junior Stock Market, Indies Pharma appointed Senator Aubyn Hill as mentor for the company’s board of directors. According to Indies Pharma, Hill brings to the board a wealth of knowledge and experience particularly in the finance and investment area.
Indies Pharma’s current board of directors include founder, Dr Guna Muppuri; President and CEO, Vishnu Muppuri; Executive Director, Senator Aubyn Hill; Non-Executive Independent Director, Dr Trevor McCartney; Non-Executive Independent Director, Dr Norman Dunn, Non-Executive Independent Director and Non-Executive Independent Director, Douglas Robinson.
“I take every opportunity to welcome new companies on our stock market. I am proud to see Indies Pharma going on the Junior Stock Market, which will make it the first local pharmaceutical distribution company to be listed” said Hill.
Indies Pharma unaudited results for the first six months to April 30, 2018 show continued business growth with revenue surpassing $301 million from $274.1 million or 10 per cent year over year. Net profit before tax also increased to $72.5 million in April 2018 from $68.6 million a year earlier.