Dhaka, Bangladesh (BBN)– The securities regulator has given its consent to United Power Generation & Distribution Company (UPGDC) to go public under book building method (BBM).
The decisions were taken on Tuesday at a commission meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
United Power Generation is the first company in the revised book building method, which was suspended by the government in January, 2011 in the wake of huge criticism of the system.
As per BSEC approval, the UPGDC will offload 33 million ordinary shares under the book building method at an offer price of BDT 72, including a premium of BDT 62 for each ten taka share.
The UPGDC will raise a fund worth above BDT 2.37 billion for the purpose of redemption of preference shares, repayment of bank loans and to meet the expenses of IPO processing.
Successful institutional investors will be allowed to get 40 percent shares, whereas the small investors, mutual funds (MFs), non-resident Bangladeshis (NRBs) and general investors will be allowed to get the remaining 60 percent shares that will be offloaded.
As per the audited financial statement for the year ended on December 31, 2013, the company’s earnings per share (EPS) and net asset value (NAV) are BDT 5.98 and BDT 23.64 respectively.
LankaBangla Investments is the issue manager of the UPGDC and ICB Capital Management is the registrar to the issue.
BBN/SSR/AD-12Nov14-9:03 am (BST)