The government has decided to offload its shares in five energy and power companies on the stock exchanges through initial Public Offering (IPO).
Finance Minister AHM Mustafa Kamal revealed the information after a meeting at the Planning Ministry on Sunday.
The companies are — North West Power Generation Company, Electricity Generation Company of Bangladesh, Ashuganj Power Station Company, BR Powergen Ltd, and Gas Transmission Company.
Titas Gas Transmission and Distribution Company and the Power Grid Company of Bangladesh will offload a further 10 percent shares on the stock exchange. These two companies are listed in the capital market.
The finance minister said the offloading will be quick and this will boost the stock market.
At first, 10 to 25 percent shares of the companies will be offloaded, said Mustafa Kamal adding, "Asset valuation of the companies will be completed in the next two months. Seven private firms have been appointed to do it swiftly."
The prices of the shares will be fixed after the valuation, said the minister.
North West Power Generation Company Ltd (NWPGCL)
The North West Power Generation Company was formed on August 28, 2007. It has implemented seven power plants with a total generation capacity of 1813 MW.
According to the 2018-19 audit report of the company, its revenue rose 43 percent to Tk3003 crore in the last four fiscal years. The company's net profit increased 146 percent to Tk327 crore during this period.
The net asset value of North West Power amounted at Tk14,816 crore, while total liability stood at Tk11,410 crore in the last fiscal year.
The company's paid-up capital is Tk160 crore.
A M Khurshedul Alam, chief executive officer of the North West Power Generation Company, told the Business Standard that they have two months to evaluate how they will get listed in the market.
"We have been working on it for the last couple of months," said Khurshedul Alam.
Electricity Generation Company of Bangladesh Ltd (EGCB)
The total electricity generation of this company was 4002 MW in the 2018-19 FY, which is about 5.67 percent of total electricity generation of the country.
The revenue of the company rose 80 percent to Tk935 crore over the last four fiscal years. The net profit of the company increased 202 percent to Tk181.63 crore in this period.
The net asset value of the Electricity Generation Company amounts to Tk1498 crore. The company's paid-up capital is Tk37.89 crore.
Ashuganj Power Station Company Ltd. (APSCL)
The revenue of Ashuganj Power increased 225 percent to Tk2304.98 core over the last four fiscal years, and its net profit jumped 1000 percent to Tk404.76 crore in this period.
The company's net asset amounted to Tk11,457 crore till the last fiscal year. The paid-up capital of Ashuganj Power is Tk661.50 crore.
At present, the total generation capacity of its eight units is 1690 MW.
Gas Transmission Company Ltd
The paid-up capital of the Gas Transmission Company is Tk700 crore. Its net asset stood at Tk13,321 crore in the last fiscal year.
According to the company audit report in 2018-19, its revenue was at Tk997.64 crore and its net profit was Tk96.53 crore.
Titas Gas Transmission Company Ltd
The gas distribution company was listed in the share market in 2008. The government holds 75 percent of its shares.
Titas Gas Transmission's revenue increased 81 percent to Tk14,164.47 core over the last five fiscal years, and its net profit slipped 55 percent to Tk464.46 crore in this period.
Power Grid Company of Bangladesh Ltd.
The power transmission company got listed in the share market in 2006. The government holds 84.64 percent of company shares.
The Power Grid Company's revenue rose 91 percent to Tk1,747 crore over the last five accounting years. Its net profit rose by 837 percent to Tk384 crore in this period.
BR Powergen Ltd
The paid-up capital of BR Powergen is Tk276 crore. Its revenue stood at Tk573 crore while its net profit was Tk75.36 crore in the last fiscal year.
At present, the total capacity of the company is 150MW.