The cut-off price of Energypac Power Generation shares has been fixed at Tk 35 each through electronic bidding by eligible institutional investors.
The Dhaka Stock Exchange (DSE) on Monday disclosed the cut-off price of the company's share through electronic subscription system (ESS) of Bangladesh.
The electronic bidding, under the book building method, took place for 72 hours – from 5:00pm on September 21 to 5:00pm on September 24 (round the clock).
During this period, 239 institutional and eligible investors offered different prices to buy the company’s shares. Among them, most bids were between Tk 40 and Tk 25.
A total of 43 bidders offered Tk 25 each while 29 bidders offered Tk 40 each.
The highest bidding price was Tk 85 and the lowest was Tk 16.
The valuation report submission period for eligible investors through ESS began at 10:30am on Sunday and will continue till 10:30am on Tuesday.
Earlier on August 6, Bangladesh Securities and Exchange Commission (BSEC) allowed Energypac Power to explore its cut-off price - a requirement for going public under the book building method.
As per the regulatory approval, the company will raise a capital worth Tk 1.50 billion from the market to expand the LPG business and repay bank loans.
The eligible investors will buy 50 per cent or worth Tk 750 million shares at the cut-off price which is set at Tk 35 each.
The remaining 50 per cent shares will be opened to the IPO participants, including general investors and non-resident Bangladeshis, at a 10 per cent discount on the cut-off price, meaning the general investors will get the IPO shares at Tk 31.50 each.
Apart from LPG business expansion and loan repayment, the company’s IPO proceeds will be used to bear the cost of the public offering process.
The company’s earnings per share (EPS) was Tk 3.13, the net asset value per share was Tk 45.15 (with revaluation reserve), while the value was Tk 30.20 (without revaluation reserve), according to the consolidated financial statement for the year ended on June 30, 2019.
LankaBangla Investments Ltd is the issue manager of the company’s IPO process.
Founded in 1995, Energypac Power Generation has been working in the sectors of power generation, energy, infrastructure, commercial automotive, industrial and commercial building and assembling and manufacturing.
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.
Following the trusts and growing demand of G-Gas, the company has taken effective measures with thriving steps to expand and develop its LPG infrastructure.