The cut-off price of shares in Energypac Power Generation Limited has been set at Tk35 each after bidding by eligible institutional investors.
As per the book building method, eligible institutional investors took part in the price discovery.
At the end of the bidding process, with a proposed rate between Tk85 and Tk16, the cut-off price was set at Tk35, according to the Dhaka Stock Exchange (DSE).
According to the rules of the book building method, the shares will be sold to general investors at a 10% discount or at Tk31.50 per share.
Institutional investors will be offered 50% of the shares at the cut-off price. The remaining 50% of will be offered to other investors, including general investors and non-resident Bangladeshis.
The book building method is being applied for raising Tk150 crore from the capital market through an initial public offering (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.
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 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.
