Baraka Patenga allowed to find IPO cut-off price

Staff Correspondent | Published: 01:13, Jan 06,2021


The Bangladesh Securities and Exchange Commission has allowed Baraka Patenga Power Limited to explore the cut-off price of its shares under the book building method of initial public offering for raising Tk 225 crore from the country’s capital market.

The company is not allowed to declare bonus dividend in five years from the date of issuance of consent letter over its IPO.

The commission gave the approval in a meeting presided over by its chairman Shibli Rubayat-Ul-Islam on December 31, 2020, a BSEC press release said on Tuesday.

The commission also directed the company to hold always 51 per cent shares of its subsidiary companies.

The selling price of the company’s shares would be set through an electronic bidding process with participation of eligible investors.

According to the IPO documents, the company will use the IPO proceeds in its subsidiaries Karnaphuli Power Limited and Baraka Shikalbaha Power Limited, to pay long-term bank loans and meet the IPO expenses.

The principal activity of the company is to set up power plants for generation and supply of electricity. The 50MW capacity plant located at Patenga in Chattogtram started its commercial operation on May 4, 2014.

Baraka Power Limited, a listed company on stock exchanges, holds 51 per cent shares of Baraka Patenga Power Limited.

As per the entity’s audited financial statements for the year ended on June 30, 2020, the company’s net asset value per share and five years’ weighted average earnings per share of five  financial years were Tk 23 (without revaluation)  and Tk 3.3 respectively.

LankaBangla Investment Limited is the issue manager of the company’s IPO.

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