Energypac Power Generation has applied for raising Tk150 crore through the book building method from the capital market
The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday approved the prospectuses for initial public offerings (IPOs) of Energypac Power Generation Limited and eGeneration Limited.
The BSEC gave the approval at a commission meeting held at its headquarters on the day. The meeting was presided over by its chairman Prof Shibli Rubayat-Ul-Islam.
Energypac Power Generation has applied for raising Tk150 crore through the book building method from the capital market.
The cut-off price of shares of the company has been set at Tk35 each after bidding by eligible institutional investors.
As per book building method, eligible institutional investors took part in the price discovery.
According to the rules of the book building method, shares will be sold to general investors at a 10% discount or at Tk31.50 per share.
Institutional investors will be offered 50% shares of any company at the cut-off price. The remaining 50% will be offered to other investors, including general investors and non-resident Bangladeshis.
The company will use the IPO proceeds to expand its business, repay bank loans and bear expenditures for the IPO process.
According to the audited financial statement as of June 30, 2019, the company's consolidated earnings per share were Tk3.13. Its net asset value per share was Tk45.15, including re-evaluated reserve and Tk30.20 and excluding re-evaluated reserve. Besides, the company's weighted average earnings per share were Tk2.21.
Energypac Power was established in 1995 and it has established itself as a major supplier and base load of generators and low voltage electrical accessories.
The Commission also approved the prospectus for initial public offering of eGeneration Limited to raise Tk15 crore.
Under the fixed price method, eGeneration will offload 1.5 crore ordinary shares for Tk10 each.
Net proceeds from the IPO will be used to buy commercial spec digital platform solutions and new market development and meet IPO expenses.
According to the financial statement ending June 30, 2019, the company's net asset value (NAV) per share was Tk20.56, while earnings per share (EPS) were Tk1.82.
At the commission meeting, the stock market regulator fined two nominee directors of Appollo Ispat, Momtazur Rahman and Mosfequr Rahman, an amount of Tk20 crore for violation of securities laws.