The cut-off price of Energypac Power Generation Limited’s shares was determined at Tk 35 through electronic bidding.
The bidding, under the book building method of the initial public offering, took place for 72 hours from September 21 to September 24.
During this period, 239 institutional and eligible investors offered different prices to buy the company’s shares. The highest bidding price was Tk 85 and the lowest was Tk 16. The cumulative value of the total bidding was over Tk 205.44 crore.
The eligible investors, therefore, will receive 2.1 crore shares.
The individual investors will be able to purchase rest of the shares, after a 10 per cent discount on the cut-off price. The securities regulator will soon approve the cut-off price.
Earlier on August 6, the Bangladesh Securities and Exchange Commission allowed Energypac to discover the cut-off price of its shares under the book building method of public offering for raising Tk 150 crore from the country’s capital market.
The company will use the IPO proceeds in expansion of LPG project, paying bank loans and meeting the IPO expenses.
As per the entity’s audited financial statements for the year ended on June 30, 2019, the company’s net asset value per share and weighted average earnings per share of five financial years were Tk 45.15, with revaluation, and Tk 2.21 respectively.
LankaBangla Investment Limited is the issue manager of the company’s IPO.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Power & Energy