Baraka Patenga investors to get minimum 54 primary shares
The Dhaka stock exchange on Monday formally allocated the IPO shares of the company, under the newly introduced pro-rata basis
A primary investor will get a minimum of 54 initial public offering (IPO) shares of the Baraka Patenga Power Limited.
The Dhaka stock exchange (DSE) on Monday formally allocated the IPO shares of Baraka Patenga Power, under the newly introduced pro-rata basis.
On 21 June this year, the DSE allocated the IPO shares of Sonali Life under this method.
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According to the DSE, Baraka Patenga Power's IPO shares have been 4.67 times oversubscribed by investors who submitted applications through the electronic subscription system (ESS).
Of the investors, ones who have applied for Tk10, 000 will get a minimum of 54 IPO shares of the company, while those who have applied for Tk20,000, Tk30,000, Tk40,000 and Tk50,000 will get 108, 162, 216 and 270 shares, respectively.
Besides, affected investors will get a minimum of 98 shares and non-residential Bangladeshis (NRBs) will get a minimum of 128 shares of the company.
The stock exchange has got 8,470 invalid applications involving Tk62.76 crore.
The company completed its IPO subscription within 13 to 17 June 2021.
Earlier, the company received approval from the Bangladesh Securities and Exchange Commission (BSEC) to issue shares at the cut-off price of Tk32 each, in their IPO.
The company will raise Tk225 crore from the capital market to expand its business.
Institutional investors will buy primary shares of Baraka Patenga Power Limited at Tk32 each while general investors will get a 10% discount on the price.
Institutional investors set the cut-off price at 72-hour bidding held between 22 to 25 February this year.
On 5 January, Baraka Patenga received approval from BSEC to explore the price of its primary shares in order to raise Tk225 crore from the market.
The company will utilise Tk144.34 crore, part of its IPO proceeds, to invest in two of its power generation subsidiaries – Karnaphuli Power Ltd and Baraka Shikalbaha Power Ltd.
The remaining funds will be used to repay loans and bear expenses of the IPO process, BSEC said in a statement.
LankaBangla Investments Ltd, a leading local merchant bank, is the issue manager of the Baraka Patenga IPO.
The BSEC also decided that the company cannot further increase its paid-up capital by issuing bonus shares within next five years. Also, the company must hold at least 51% shares of its two subsidiaries, according to the regulator.
At the end of the 2019-2020 fiscal year, Baraka Patenga's net asset value (NAV) per share stood at Tk23 without asset revaluation surplus added. The company's NAV per share was Tk20.98, excluding that of its subsidiaries.
Last fiscal year, the company's consolidated earnings per share (EPS) stood at Tk4.37, which was Tk1.84 on a solo basis. The five-year weighted average of the company's consolidated EPS was Tk3.30, which would be Tk2.82 if profits of subsidiaries were excluded.
