The Initial Public Offering (IPO) of Ashuganj Power Station Company Ltd begins today, with the company aiming to raise Tk100 crore.
The IPO will stay open for both resident and non-resident Bangladeshis till October 6 this year.
The bonds will be non-convertible, fully redeemable, and coupon bearing. Each of the 200,000 bonds with a seven-year term will cost Tk 5,000. The annual interests from the bonds will be minimum 8.5% and maximum 10.5%, payable every six months.
The state-run company will use the proceeds for land development, purchase of primary fuel and transportation. Ashuganj Power, the largest power plant of Bangladesh, now generates 1,690 megawatt.
The Bangladesh Securities and Exchange Commission (BSEC) approved Ashuganj Power Station’ IPO on July 2.
According to the financial statement ended on June 30, 2017, the company's net asset value (NAV) per share stood at Tk265.96, while the weighted average of earnings per share (EPS) was Tk10.63.
ICB Capital Management and BRAC EPL Investments are the issue managers of the bond to be issued by Ashuganj Power Station Company. The ICB Capital Management is also the trustee of the bond.
This power station plays a significant role in the national economic development by generating more than 12% of total demand for electricity in the country.
Ashuganj Power Station is located near to the Titas Gas field and at the bank of river Meghna. As a part of the Power Sector Development and Reform Program of the government, Ashuganj Power Station was incorporated under the Companies Act 1994 on 28 June 2000.
