The initial public offering (IPO) subscription of Energypac Power Generations Ltd will begin today, according to a statement by the company.
Investors can apply to buy the electromechanical conglomerate's primary shares until 13 December.
Following institutional investors' bidding, the company recently secured the cut-off price of its primary shares at Tk35 per share.
Now, the company is offering the remaining half of its new primary shares – nearly 2.15 crore shares – to the general public at Tk31 each, as suggested by the book building method of IPOs.
Energypac will invest its total IPO fund of Tk150 crore mainly to expand its liquefied petroleum gas business. A minor portion of the funding will be spent on repaying some expensive bank loans and also bearing the cost of the IPO process.
As of 30 June, 2019, the company's net asset value per share was Tk45.15 including all the revaluation surpluses, while its earnings per share (EPS) was Tk3.13 for the 2018-19 fiscal year.
According to a Bangladesh Securities and Exchange Commission statement last October, Energypac's weighted average EPS for the five consecutive fiscal years up to the end of June 2019 stood at Tk2.21. In the statement, the regulatory body approved the company for public subscription.
LankaBangla Investments Ltd, A leading local merchant bank, is the issue manager for the IPO of Energypac.