The IPO subscription of Baraka Patenga Power started today (Sunday), aiming to raise Tk 2.25 billion under the book-building method.
The power generation company’s subscription through electronic subscription system (ESS) will be continued until June 17, officials said.
The minimum required investment for the general public will be Tk 20,000 as of June 03 in matured listed securities at market price.
The minimum and maximum amount allowed for subscription for the general public would be Tk 10,000 (or its multiples) and 50,000 respectively.
Baraka Patenga is the second company, after Sonali Life Insurance, which IPO shares will be allotted on the newly introduced pro-rata basis instead of a lottery system.
The initial public offering (IPO) share distribution on a pro-rata basis allows every applicant to get shares which came into effect from April 1, this year.
The stock market regulator – Bangladesh Securities and Exchange Commission (BSEC) allowed the company to explore the cut-off price of its shares through eligible investors’ bidding on January 5, this year.
Earlier the company completed electronic bidding and explored its cut-off price of shares - a requirement for going public under the book building method.
The cut-off price of shares of the company has been fixed at Tk 32 each through electronic bidding by eligible investors held between February 22 and February 25.
The general investors will get its IPO shares at Tk 29 each, a 10 per cent discount on the cut-off price, as per the book-building method.
Baraka Patenga Power will issue a total of 73,770,488 ordinary shares for raising Tk 2.25 billion from the stock market under the book-building method.
Of the total shares, 36,885,288 shares are reserved for eligible investors (EIs) at their own bid price while the remaining 36,885,200 shares will be opened for general investors, including non-resident Bangladeshis for IPO.
Of the IPO proceeds, more than Tk 1.44 billion will be invested in two of its subsidiaries--Karnaphuli Power and Shikalbaha Power, partially repay long-term bank loans and bear the expenses of the 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.
Baraka Patenga Power holds 51 per cent shares of both the subsidiaries each, whose main role is to generate and supply electricity to the national grid.
In the financial year (FY) 2019-20, the Baraka Patenga Power logged a consolidated profit of Tk 674 million, up a staggering 123.9 per cent year-on-year.
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.
Besides, the company’s weighted average consolidated EPS for the last five years were Tk 3.30 and separate Tk 2.82.
Lanka Bangla Investment is the issue manager for the company’s IPO.
Baraka Power, the parent company of Baraka Patenga Power, has been listed on the bourses since 2011. Each share of the company closed at Tk 27.70 on Thursday.