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Elite Diagnostics IPO to open February 5

Published:Wednesday | January 31, 2018 | 12:00 AM


The amended prospectus for Elite Diagnostics Limited's initial public offering, IPO, has been released and the company will now float its shares to junior market investors between February 5 and 12.

The prospectus was pulled to correct information financial information, delaying the IPO's launch by two weeks.

The review was prompted apparently by an article from IC Insider, an independent investment blog, which indicated among other things that depreciation charged in one section of the unaudited accounts was not charged in other sections of the unaudited accounts.

Elite's IPO documentation had already been revised once, with an addendum providing new information to the prospectus regarding depreciation data, which was missing from the invitation document.

Elite is seeking $141 million of equity capital from its IPO, which was originally set to open January 22. The medical diagnostics company intends to use the proceeds for working capital and to pay down its debt. The offer includes 70.68 million shares at $2 each, 18 million or 25 per cent of which are reserved.