The offer opens on Thursday July 12 and closes on July 19. The IPO will allow Indies Pharma to raise the funds for working capital needs and for continued expansion. GK Capital Management has been advising Indies Pharma for the last three years and is leading the transaction playing the dual roles of Lead Arranger and Co-Broker. Sagicor Investments has been engaged as Co-Broker.
The IPO will allow Indies Pharma to raise funds for working capital needs and for continued expansion into the Caribbean market. The company said it plans to position itself as a 'one stop shop' for pharmaceuticals, healthcare, and consumer and hygiene products.
In the invitation, Indies Pharma plans to sell 266.5 million ordinary shares at $1.50 each. This reflects a price less than the cost of a simple tablet. After a successful IPO it would take the total issued ordinary shares to 1.332 billion units.
The selling shareholder co-founder and chief operating officer, Vishnu Muppuri, will reduce her holding from 428.7 million to 336.1 million shares, while Guna Muppuri's holding will remain at 590.9 million shares after the IPO.
The company made audited revenues $620.3 million for its full year ending October 2017 or 6.0 per cent more year on year. The growth in revenues was also reflected in bottom line with $172.3 million net profit before tax when compared to $110.3 million in the prior year.
The company’s total assets were $825.5 million as at October 2017, an increase of 64 percent or $320.9 million over the prior year. 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 percent year over year. Also net profit before tax increased to $72.54 million in April 2018 from $68.6 million a year earlier.
Between 2013 and 2017, the general trend in normalized gross margins was positive, growing from 61.4 per cent in 2013 to 66.3 per cent in 2017. In 2016, normalized gross margin declined to 62.1 per cent due largely to a shift in the company’s revenue mix due to the growth in the volume of the lower margin NHF-related pharmaceutical sales relative to the company’s overall sales.
However, 2017 has seen a return to higher margins with a marginal growth in the non-NHF-related sales relative to total sales, as well as a general reduction in the company’s cost of production.
According to the prospectus, "In the future, the company intends to deepen its distribution network in Jamaica and throughout the Caribbean through strategic acquisitions, and the diversification of product offerings inclusive of personal care, and products for the agricultural market."
"The proceeds of the shares for subscription approximately $248.4 million will then accrue to the company, and the proceeds of the sale of shares approximately $138.8 million will accrue to the selling shareholder," the prospectus stated.
Indies Pharma Jamaica was incorporated in December 2003 by medical doctor, Dr. Guna Muppuri, and his wife Mrs. Vishnu Muppuri. The company sold its first pharmaceutical on 18 April 2005, and today distributes over 150 prescription and non-prescription or ‘over the counter’ generic pharmaceutical products for Bioprist Holdings Limited under the ‘Bioprist’ brand.
The company is headquartered in a commercial complex in Freeport, Montego Bay, Jamaica, and the Trident Pharmacy business is located nearby in Sam Sharpe Square, Montego Bay, Jamaica. The company currently services customers across all 14 parishes of 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.
The company goal is to make medicines more available and affordable to Jamaicans. It distributes both prescription and non-prescription drugs within Jamaica and generates over half a billion dollars in annual revenue.
“We believe in making drugs more affordable and available to the people of Jamaica and to do this we have to expand our offerings and build our capacity. Our primary goal is to secure a larger share of the current pharmaceutical market in Jamaica by pursuing various new channels through extensive brand equity building,” Dr Muppuri said.
Indies Pharma’s portfolio includes more than 150 drug presentations from approximately 17 international companies based in Bangladesh, India and the USA. Within its portfolio are Lipirest (medication for high cholesterol), Flexim (a muscle relaxant for pain relief) and HB Fortex (an iron supplement).
Indies Pharma estimates that it holds a 2.5 per cent share of Jamaica's estimated US$250 million to US$300 million pharmaceutical market.
- Countries: Jamaica