BSEC allows Energypac to raise Tk 150cr, EGen Tk 15cr thru IPOs

Staff Correspondent | Published: 22:50, Oct 21,2020


The Bangladesh Securities and Exchange Commission on Wednesday approved Energypac Limited’s proposal to raise Tk 150 crore and EGeneration Limited’s proposal to raise Tk 15 crore from the country’s capital market through initial public offerings.

A BSEC meeting, presided over by its chairman Shibli Rubayat Ul Islam, approved the IPO proposals, a BSEC press release said.

EGeneration will use the IPO fund to buy office space, pay bank loans, develop digital healthcare platform and meet IPO expenses, according to its IPO prospectus.

As per the entity’s audited financial statements for the year ended on June 30, 2019, the company’s net asset value per share (without valuation) and weighted average earnings per share were Tk 20.56 and Tk 1.82 respectively.

The regulator also approved the IPO of Energypac Limited, allowing the company to raise Tk 150 crore by issuing shares at Tk 35-31 each.

The BSEC on August 6 allowed the company to conduct eligible institutional investors’ bidding under the book building method of public issue rules.

Energypac would issue 4.02 crore shares where 2.02 crore would be issued to eligible investors at their bidding price and the remaining 2.01 crore shares would be issued to general investors at Tk 31, at 10 per cent discount of cut-off price.

However, the regulator would ask for explanations from eligible investors who would bid for shares of Energypac at more than Tk 60.

Besides, the commission also decided to investigate the bidding of Walton and subsequent IPOs under the book building method to find if the eligible investors had bid for shares in accordance with the securities rules.

It would ask for explanation from eligible investors who participated in the bidding of those companies about their bidding prices.

If the investors fail to provide satisfactory answers, the BSEC would take action against them.

The regulator at the meeting also fined directors of Appollo Ispat, Art International Limited and Jupitar Business Limited, Tk 10 lakh each as each director sold over 8 lakh shares without prior declaration.

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