Energypac Power Generation holds an IPO road show in the city Sunday. Energypac Power Generation, a leading power engineering company, will raise a capital worth Tk 1.50 billion under the book building method to expand its Liquid Petroleum Gas (LPG) project.
As part of raising capital, the company held an IPO (initial public offering) road show on Sunday at a city hotel in the capital Dhaka.
The company initially already started commercial operation of LPG plant set up at Dacope Upazila in Khulna district through 0.5 million gas cylinders named 'G-Gas'.
Of Tk 1.50 billion, which will be raised through IPO, Tk 1.0 billion will be utilised to expand the company's LPG project and Tk 480 million will go for repayment of bank loan.
The company said they have been conducting PL gas distribution service through 12 distribution networks and more than 300 distributors across the country.
At the IPO road show, Humayun Rashid, the managing director, said their company has investments in various fields including engineering and steel structure.
Eligible investors will be allowed to purchase 50 per cent shares of Energypac Power Generation at cut-off price, while mutual funds and collective investment scheme will purchase 10 per cent shares at the same price.
General public and non-resident Bangladeshis (NRBs) are allowed to purchase 30 per cent and 10 per cent shares respectively at 10 per cent discount from the cut-off price.
According to the company's prospectus, for the year 2016-17, the company reported its earnings per share (EPS) of Tk 2.03 which was Tk 1.0 in 2015-16, Tk 1.79 in 2014-15 and Tk 2.82 in 2013-14.
The company's net asset value (NAV) per share has stood at Tk 36.15 in 2016-17 and the amount was Tk 30.59 in 2015-16, Tk 31.13 in 2014-15 and Tk 31.54 in 2013-14. The company also reported its net profit of Tk 304.56 million for 2016-17, above Tk 150.09 million for 2015-16, above Tk 268.60 million for 2014-15 and 402.10 million in 2013-14.
Engineer Rezwanul Kabeer, a director of the company, said the LPG consumption is being increased keeping pace with the country's movement towards middle income country.
"We need more investment for LPG plant having enormous business opportunity," Kabeer said.
The company's independent director Atique-E-Rabbani said their company has a very solid top management.
Another independent director Dr. Mohammad Tamim said the company's management is highly motivated with a vision.
"The company has a good prospect as the LPG market will grow rapidly to meet up consumers' increased demand," Tamim said.
The company's chairman engineer Rabiul Alam said their company works not only in Bangladesh but also in some states of India. The company's pre-IPO paid-up capital is of above Tk 1.49 billion and the amount would rise to above Tk 2.99 billion after going public.
Presently, the company's sponsor-directors hold 70.71 per cent shares while general shareholders hold 29.29 per cent shares.
Energypac Power Generation was incorporated as a private limited company on July 15, 1995. Later, the company has become one of the leading power engineering companies in Bangladesh.
The company's products include diesel generator, gas generator, CMMH, commercial vehicles, agro machineries, air compressor, CNG conversion, lift, boiler & chiller, steelpac, G-Gas LPG and woodward AISF, according to company's website.
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