The bidding for eligible investors (EIs) to discover the cut-off price of shares of Energypac Power Generation Limited begins Monday.
The power generation company’s share bidding through the electronic subscription system (ESS) of the exchanges will continue until September 24.
Earlier, the Bangladesh Securities and Exchange Commission (BSEC) allowed Energypac Power Generation to determine the cut-off price of its shares through eligible investors' bidding. The book building method will be applied for raising Tk150 crore from the capital market through an initial public offering (IPO).
Only institutional investors can participate to explore the cut-off price of the company's shares under the electronic bidding process. Besides, it will be set based on the bids submitted by investors.
Although institutional investors are supposed to purchase shares of the company at the cut-off price, individual investors will get the scope for purchasing the shares at a 10 % discounted price through IPO.
The company will use the IPO proceeds to expand its business, repay bank loans and cater 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 excluding re-evaluated reserve. Besides, the company's weighted average earnings per share were Tk2.21.
LankaBangla Investment Limited is the issue manager for the company's IPO.
Energypac Power Generation was established in 1995 and it has established itself as a major supplier and base load of generators and low voltage electrical accessories.
