A general investor will get minimum 54 initial public offering (IPO) shares of Baraka Patenga Power against application of Tk 10,000.
The Dhaka Stock Exchange (DSE) on Monday formally allocated the IPO shares of Baraka Patenga Power, under the newly introduced pro-rata basis.
The IPO shares distribution on pro-rata basis allows every applicant to get shares.
Of the general investors, who have applied for Tk 10,000 will get a minimum of 54 IPO shares. Those who applied for Tk 20,000 will get 108 shares, those who applied for Tk 30,000 will get 162 shares, those who applied for Tk 40,000 will get 217 shares and those who applied for Tk 50,000 will get 272 shares.
Besides, affected investors will get a minimum of 97 shares and non-residential Bangladeshis (NRBs) will get a minimum 128 shares of the company.
The power generation company's subscription through electronic subscription system (ESS) under the book-building method was held between June 13 and June 17.
Baraka Patenga is the second company, after Sonali Life Insurance, whose IPO shares have been allocated under the newly introduced pro-rata basis.
The stock market regulator - Bangladesh Securities and Exchange Commission (BSEC)-- allowed the company to explore the cut-off price of its shares through eligible investors' bidding on January 5, this year.
Earlier the company completed electronic bidding and explored its cut- off price of shares - a requirement for going public under the book building method.
The cut-off price of shares of company was fixed at Tk 32 each. But the general investors got its IPO shares at Tk 29 each, a 10 per cent discount on the cut-off price, as per the book-building method.
Baraka Patenga Power issued a total of 73,770,488 ordinary shares for raising Tk 2.25 billion from the stock market under the book-building method.
Of the IPO proceeds, more than Tk 1.44 billion will be invested in two of its subsidiaries--Karnaphuli Powerand Shikalbaha Power, partial repay long-term bank loans and bear the expenses of the IPO process.
Subsidiaries of the Baraka Patenga - Karnaphuli Power and Baraka Shikalbaha Power have already started commercial operation after implementing two (HFO) based IPP (Independent Power Producer) power plants having generation capacity of 110MW and 105MW respectively.
Baraka Patenga Power holds 51 per cent shares of both the subsidiaries each, whose main role is to generate and supply electricity to the national grid.
According to the audited financial statement as of June 30, 2020, the company's consolidated earnings per share (EPS) were Tk 4.37 and separate Tk 1.84, consolidated net asset value per share Tk 23 without re-evaluated reserve and separate Tk 20.98.
Besides, the company's weighted average consolidated EPS for the last five years were Tk 3.30 and separate Tk 2.82.
Lanka Bangla Investment is the issue manager for the company's IPO.
Baraka Power, the parent company of Baraka Patenga Power, is already listed on the bourses since 2011.
