The initial public offering (IPO) subscription of Energypac Power Generation Ltd will commence on December 7, aiming to raise Tk 1.50 billion under the book-building method.
The IPO subscription for shares of the power generation company through electronic subscription system under the book-building method will continue until 5:30pm on December 13, according to the company’s abridged prospectus published on Monday.
Earlier on October 21, Bangladesh Securities and Exchange Commission (BSEC) — the securities regulator – approved the company’s IPO proposal.
Prior to that, the company completed its electronic bidding process and explored its cut-off price of shares - a requirement for going public under the book building method.
The cut-off price of Energypac Power shares has been fixed at Tk 35 each through electronic bidding by eligible institutional investors held on September 21 to September 24.
As per the stock market regulator’s approval, the company will raise Tk 1.50 billion by issuing a total of 40,293,566 ordinary shares to expand the LPG business and repay bank loans.
Of the total shares, 20,146,766 shares are reserved for eligible investors at their own bidding price.
Remaining 20,146,800 shares will be opened to the IPO participants, including general investors and non-resident Bangladeshis, at a 10 per cent discount on the cut-off price, meaning the general investors will get the IPO shares at Tk 31 each.
Apart from LPG business expansion and loan repayment, the company’s IPO proceeds will be used to bear the cost of the public offering process.
The company’s earnings per share (EPS) was Tk 3.13, the net asset value per share was Tk 45.15 (with revaluation reserve), while the value was Tk 30.20 (without revaluation reserve), according to the consolidated financial statement for the year ended on June 30, 2019.
LankaBangla Investments Ltd is the issue manager of the company’s IPO process.
Founded in 1995, Energypac Power Generation has been working in the sectors of power generation, energy, infrastructure, commercial automotive, industrial and commercial building and assembling and manufacturing.
The company has successfully entered the LPG market branding as G-GAS. G-Gas LPG is the company’s one of the pioneering brands in the energy sector, which currently offers household, commercial, bulk LPG and autogas solutions across the country.
Following the trusts and growing demand of G-Gas, the company has taken effective measures with thriving steps to expand and develop its LPG infrastructure.