KEY POINTS OF THE IPO
- Cut-off price has been set at Tk35 per share
- Tk31.5 per share for general investors, as per the book-building method
- Consolidated revenue was Tk1,097 crore at the end of FY2019-20
- Net profit stood at Tk58.18 crore
- EPS was Tk3.83
Energypac Power Generation Ltd will hold an initial public offering (IPO) lottery on 3 January, 2021 to allocate its shares to general investors.
LankaBangla Investments Ltd, issue manager of the IPO, confirmed the matter.
Iftekhar Alam, chief executive officer of LankaBangla Investments, said the lottery venue and time are not fixed yet.
He said applications for Energypac's shares have been oversubscribed by 10.76 times against the public offering of nearly 2.15 crore shares.
Following institutional investors' bidding, the company secured the cut-off price of its primary shares at Tk35 per share. But the general public got a 10% discount on the cut-off price, 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 (LPG) business. The company will spend a minor portion of the funds on repaying some expensive bank loans and paying the cost of the IPO process.
At the end of the fiscal year 2019-20, the company posted consolidated revenue of Tk1,097 crore, which was 24% lower compared to the previous fiscal year. However, its net profit grew by 21% to Tk58.18 crore and earnings per share stood at Tk3.83 in the last 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 public subscription of the company.
Energypac has diversified its business through: standby and base load generators, JAC brand automobiles, John Deere brand agro-based machinery, JCB brand construction machinery and material handling equipment, and operating CNG stations along with aftermarket service.
The company is also engaged in engineering, procurement and construction (EPC) contracts; the operation, installation of CNG refueling station and conversion kits; plus the installation and maintenance services of power plants.
Energypac has established the Steelpac brand for designing, manufacturing and erecting pre-engineered steel buildings. It also provides complete steel constructions for industrial, commercial and residential steel buildings.
Energypac has also entered the LPG market with the brand name G-Gas. Its LPG bottling and distribution plant is located near Mongla Port.
The company further plans to assemble and manufacture: ATS, canopies, LT panels, genset trailers, control panels, elevators, etc.
Energypac signed a contract with Sylhet Gas Fields Limited for its condensate fractionation plant and to avail associated facilities at Bahubol, Habigonj. Total value of the contract is $28 million. The share of Energypac in this consortium is 52.40%.
The company also signed a captive power plant project deal with Essential Drugs Company Limited. The total size of this contract is Tk80 crore.