Baraka Patenga IPO share allotment Monday

The initial public offering (IPO) shares of Baraka Patenga Power will be allotted on Monday (5 July). 

The Dhaka Stock Exchange will distribute the company's shares formally on Monday.

The company completed its IPO subscription between 13 and 17 June this year. 

Earlier, it received approval from the Bangladesh Securities and Exchange Commission (BSEC) to issue shares at the cut-off price of Tk32 each in the IPO.

It will raise Tk225 crore from the capital market to expand its business.

Institutional investors will buy the company's primary shares at Tk32 each while the general public will get a 10% discount.

Besides, institutional investors set the cut-off price at the 72-hour bidding held between 22 and 25 February this year.

On 5 January, Baraka Patenga received approval from the BSEC to explore the price of its primary shares.

It will utilise Tk144.34 crore, part of its IPO proceeds, to invest in two of its power generation subsidiaries – Karnaphuli Power and Baraka Shikalbaha Power.

The remaining fund will be used to repay loans and bear IPO expenses, the BSEC said in a statement.

LankaBangla Investments, a leading local merchant bank, is the issue manager of Baraka Patenga.

The BSEC also decided the company cannot further increase its paid-up capital by issuing bonus shares within the next five years. 

Also, the company must hold at least 51% of shares of its two subsidiaries, according to the regulator.

At the end of the fiscal year 2019-20, Baraka Patenga's net asset value per share stood at Tk23, excluding asset revaluation surplus. 

Its net asset value per share was Tk20.98, excluding that of its subsidiaries. 

In the last fiscal year, the company's consolidated earnings per share stood at Tk4.37, which was Tk1.84 on a solo basis. 

The five-year weighted average of the company's consolidated earnings per share was Tk3.3, which would have been Tk2.82 if profits of subsidiaries were excluded.