The book-building process of BF Biosciences’ Initial Public Offer (IPO) has concluded with an oversubscription of 3.40 times, the company said on Thursday. The IPO received an overwhelming response from institutional investors and high-net-worth individuals. The strike price was Rs 77/share, a maximum of 40% higher than the floor price of Rs 55. 

BF Biosciences has raised Rs 1.93 billion, making it the first Pharma sector IPO in 2024. Several brokerages had issued almost unanimous calls to ‘subscribe,’ which resulted in investor demand amounting to Rs 4.7 billion against the IPO’s book-building size of Rs 1.375 billion.

The general public will subscribe to 6.25 million shares (25 per cent of the total offer size) on October 2nd and 3rd at the strike price of Rs 77.

Farhan Rafiq, COO of BF Biosciences, thanked investors for their overwhelming response and vowed to ensure the growth of their shareholders’ equity.

This strategic initiative is expected to drive significant growth in both the company’s top line and profitability. The company has already completed a brownfield expansion, and the IPO will also help the company manage the working capital needs of the aforesaid expansion.

Shahid Ali, CEO of Arif Habib Limited, the lead manager and book-runner to the issue, said that BF Biosciences’s IPO received an exceptional response, with an impressive participation of Rs. 4.7 billion. This marks a significant milestone, as it has been a considerable time since an IPO has garnered such overwhelming interest. The IPO achieved an oversubscription of 3.4 times and a premium of 40% over its floor price.