Baraka Patenga Power's bidding to explore the cut-off price of its shares will commence on February 15 which will raise Tk 2.25 billion under the book-building method.
The power generation company's bidding through electronic subscription system (ESS) of the exchanges will be continued until 5:00pm on February 18 (round the clock).
The valuation report submission period for eligible investor through ESS will start at 10:30am on February 22 and continue till 10:30am on February 24, according to a statement on Wednesday.
Only the eligible investors can participate to explore the cut-off price of the company's shares under the electronic bidding process.
Each eligible investor who intends to participate in the electronic bidding for the company's shares shall maintain a minimum investment of Tk5.0 million only for recognised provident funds, approved pension and gratuity funds and other EIs of Tk 10 million at market price in listed securities as on the end of February 7 as per the Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015.
The minimum bidding value for bidding shall be Tk 5.0 million which is accordance with the BSEC consent letter to Baraka Patenga Power dated January 11, 2021, according to the statement.
The stock market regulator on January 5 allowed Baraka PatengaPower to explore cut-off price of its shares through eligible investors' bidding -- a requirement for going public under the book building method.
As per the regulatory approval, Baraka Patenga to raise Tk 2.25 billion from the capital market for investing in its subsidiaries - Karnaphuli Power and Baraka Shikalbaha Power, partial repay long-term bank loans and expenses of IPO process.
Earlier in August, last year, the regulator asked the company to apply with a revised red-herring prospectus, updated audited financial statements, and other documents and the company submitted a revised application with a red-herring prospectus.
According to the audited financial statement as of June 30, 2020, the company's consolidated earnings per share (EPS) were Tk 4.37 and separate Tk 1.84, consolidated net asset value per share Tk 23 without re-evaluated reserve and separate Tk 20.98.
Besides, the company's weighted average consolidated earnings per share for the last five years were Tk 3.30 and separate Tk 2.82.
Lanka Bangla Investment is the issue manager for the company's IPO process.
The BSEC also decided that the company cannot further increase its paid-up capital by issuing bonus shares within the next five years after date of issuing the consent letter.
Also, the company must hold at least 51 per cent stakes of its two subsidiaries all the time, according to the BSEC.
Baraka Group, mainly a venture of non-resident Bangladeshis, began its journey in the mid-2000s to develop a modern residential area in Sylhet.
The group went into the power generation business more than a decade ago and its first power venture - SylhetBarakatullah Electrodynamics, now Baraka Power Ltd - is listed on both bourses. Baraka Patenga is a subsidiary company of Baraka Power which was listed on the Dhaka Stock Exchange since 2011.
Incorporated as a private limited company in 2011, Baraka Patenga Power's main activity is to set up power plants for power generation and supply.
Baraka Patenga Power held its IPO road show on March 28, 2018