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Ashuganj Power to float IPO worth Tk 1.0 billion

Tough action against Coppertech Industries auditor


FE Report | Published: July 03, 2019 11:06:30 | Updated: July 04, 2019 10:42:02


Ashuganj Power Station Company will raise a capital worth Tk 1.0 billion to conduct different development works including the land development.

The company will raise the capital by issuing bond through initial public offering (IPO).

The Bangladesh Securities and Exchange Commission (BSEC) approved the company's proposal of issuing bond at a meeting held at BSEC office on Tuesday.

The characteristics of the bond will be non-convertible, fully redeemable and coupon bearing with a face value of Tk 5000 per unit. The tenure of the bond will be seven years.

The company will raise the capital to bear the costs of land development, civil works, initial fuel, engineering and consultant service, and the purchase of vehicles.

As per the financial statement for the year ended on June 30, 2017 the company's net asset value (NAV) is Tk 265.96 per share and weighted average of the earnings per share (EPS) of five years is Tk 10.63.

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.

At Tuesday's meeting, the securities regulator also approved the proposal of Tk 5.0 billion subordinate bond to be issued by the Premier Bank.

The tenure of the fully redeemable bond will be seen years, whereas the face value is Tk 10 million per unit.

On Tuesday, the securities regulator has asked M/S Ahmad & Akhtar, a CA firm, to refrain from the auditing the financial statements of listed companies as the firm has no partnership.

According to BSEC, M/S Ahmad & Akhtar recently has turned into a proprietorship firm from a partnership firm as one of its partners--Mr. Shaheed Mohammad, retired from the partnership.

Recently, M/S Ahmad & Akhtar has come under criticism after auditing the financial statement of the Coppertech Industries.

The Dhaka Stock Exchange (DSE) has not yet approved the listing proposals of Coppertech Industries due to some 'inconsistencies' found in its financial statement.

mufazzal.fe@gmail.com

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