Baraka Potenga Power Limited will hold a road show for eligible institutional investors on March 28 as the company plans to go public.
The power generation company is set to raise Tk 2.25 billion from the capital market through initial public offering (IPO) using the book building method.
As part of raising the capital, the company will hold IPO road show at International Convention Centre Bashundhara at 7:00pm on the day, when eligible institutional investors will get details about various aspects of the company, according to Dhaka Stock Exchange (DSE).
Eligible institutional investors like merchant bankers, asset management companies, stock dealers, banks, mutual funds and collective investment scheme, financial institutions, insurance companies, alternative investment fund managers and other institutions as per approved by the commission will participate in the event.
A road show is a requirement under the book building regulations before price discovery. Book building is a process through which an issuer attempts to determine the price to offer for its security based on demand from institutional investors.
The price of an IPO share is determined through automated bidding by eligible financial institutions at the electronic bidding cut-off price.
Eligible investors will be allowed to purchase 50 per cent shares of the company at cut-off price, while mutual funds will purchase 10 per cent shares at the same price.
General public and non-resident Bangladeshis (NRBs) will purchase 30 per cent and 10 per cent shares respectively at 10 per cent discount from the cut-off price, according to the revised public issue rules.
LankaBangla Investments is the issue manager of the IPO of Baraka Potenga Power while Unicap Investments is the registrar to the issue.
The issue manager will display the company's fundamentals to the eligible institutional investors during the road show.
Baraka Patenga Power was incorporated as private limited company on 7 June 2011 having 51 per cent equity investment of Baraka Power (previously known as Barakatullah Electro Dynamics) and converted into public limited company on 28 April, 2014.
Baraka Patenga Power's paid-up capital is Tk 945 million and authorised capital is Tk 3.0 billion, according to the company's website information.
Meanwhile, the road show of Star Ceramics will be held on March 29 which is set to raise a capital worth Tk 600 million from the capital market using the book-building method.
The company will hold IPO road show at Radisson Blu Dhaka Water Garden 6.30 pm on the day, when eligible institutional investors will get information about various aspects of the company, according to DSE.
Roots Investment and ICB Capital Management are jointly working as issue manager of the IPO while Green Delta Capital is registrar to the issue.
The issue managers will display the company's fundamentals to the eligible institutional investors during the road show.
The company will utilise the IPO proceeds to repayment the bank loans, expansion of sanitary ware-plant and IPO expenses, according to red-herring prospectus of the company.
Started commercial production of tiles on 1 January 2013, the company is engaged in manufacturing and marketing of ceramic tiles and sanitary ware.
The company's pre-IPO paid-up capital is Tk 1.50 billion and authorised capital is Tk 3.50 billion as on 31 December, 2017.
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