Baraka Patenga Power's bidding to explore the cut-off price of its shares now will begin on February 22 instead of earlier schedule for February 15 as the issuer company announced a fresh date of bidding.
The power generation company's share bidding through electronic subscription system (ESS) will be continued until February 25 (round the clock) as per the new schedule.
The Dhaka Stock Exchange (DSE) has given consented to new schedule which will be started on February 22 and continue until February 25, Mohammad Rana, AGM Finance & the company secretary of Baraka Patenga Power Ltd confirmed the FE.
Share bidding through EIs through ESS was supposed to begin February 15 and continue on February 18.
Only the eligible investors can participate to explore the cut-off price of the company's shares under the electronic bidding process.
Each Eligible Investor (EI) who intends to submit application through the ESS of the exchange(s) shall maintain a minimum investment of Tk 5.0 million only for approved pension funds, recognised provident funds and approved gratuity funds and other Els of Tk 10 million at market price in listed securities as on February 07, 2021.
The minimum value for bidding shall be Tk 5.0 million which is accordance with the Bangladesh Securities and Exchange Commission (BSEC) consent letter to Baraka Patenga Power dated January 11, 2021, according to a statement.
On January 5, the stock market regulator allowed Baraka Patenga to explore cut-off price of its shares through eligible investors' bidding -- a requirement for going public under the book building method.
As per regulatory approval, Baraka Patenga Power will raise Tk 2.25 billion from the capital market under the book-building method.
Of the IPO proceeds, more than Tk 1.44 billion will be invested in two of its subsidiaries --Karnaphuli Power and Shikalbaha Power, partial repay long-term bank loans and bear the expenses of IPO process.
Subsidiaries of the Baraka Patenga - Karnaphuli Power and Baraka Shikalbaha Power have already started commercial operation after implementing two (HFO) based IPP (Independent Power Producer) power plants having generation capacity of 110MW and 105MW respectively.
In the financial year (FY) 2019-20, the Baraka Patenga logged profit of Tk 674 million, up a staggering 123.9 per cent.
After the repayment of long-term debt of Baraka Patenga Power with a portion of the IPO proceeds, the company's profitability would increase, said Chowdhury.
According to the audited financial statement as of June 30, 2020, the company's consolidated earnings per share (EPS) were Tk 4.37 and separate Tk 1.84, consolidated net asset value per share Tk 23 without re-evaluated reserve and separate Tk 20.98.