The securities regulator has allowed Energypac Power Generation Limited to determine its cut-off price of its shares through eligible investors' bidding -- a requirement for going public under the book building method.
The Bangladesh Securities and Exchange Commission (BSEC) came up with the approval at a meeting held at the BSEC office Thursday.
Energypac Power Generation Limited wants to raise Tk150 crore through IPO.
Only the institutional investors can participate to explore the cut-off price of the company's shares under the electronic bidding process. Besides, it will be set based on the bids submitted by the investors.
Although the institutional investors are supposed to purchase shares of that company at the cut-off price, the individual investors get the scope for purchasing the shares at 10 percent discounted price through IPO.
Energypac Power Generation Ltd will use the IPO proceeds to expand business, repay bank loans and cater expenditures for the IPO process.
According to the audited financial statement as of June 30, 2019, the company's consolidated earnings per share was Tk3.13, net asset value per share Tk45.15 including re-evaluated reserve and Tk30.20 excluding re-evaluated reserve.
Besides, the company's weighted average earnings per share was Tk2.21. Lanka Bangla Investment Limited is the issue manager for the company's IPO.
The company is engaged in diversified businesses broadly categorized power and energy and commercial automobile sectors. Energypac Power started its business in July 1995.