The initial public offering (IPO) subscription of Baraka Patenga Power will begin on June 13, aiming to raise Tk 2.25 billion under the book-building method.
The power generation company's subscription through electronic subscription system (ESS) under the book-building method will be continued till June 17, according to its abridged prospectus published on Tuesday.
Baraka Patenga is the second company, after Sonali Life Insurance, whose IPO shares will be allocated on the newly introduced pro-rata basis instead of lottery system. Sonali Life's IPO subscription will be held between May 30 and June 3.
The IPO share distribution on pro-rata basis allows every applicant to get shares which came into effective from April 1 of this year.
The Bangladesh Securities and Exchange Commission (BSEC) allowed Baraka Patenga Power to explore the cut-off price of its shares through eligible investors' bidding and IPO proposal on January 5.
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 has been fixed at Tk 32 each through electronic bidding by eligible investors held between February 22 and February 25.
The general investors will get 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 will raise Tk 2.25 billion from the capital market under the book-building method by issuing a total 73,770,488 ordinary shares.
Of the total shares, 36,885,288 shares are reserved for eligible investors (EIs) at their own bid price while remaining 36,885,200 shares will be opened for general investors, including non-resident Bangladeshis for IPO, at a 10 per cent discount on the cut-off price.
Of the IPO proceeds, more than Tk 1.44 billion will be invested in two of its subsidiaries--Karnaphuli Power and Shikalbaha Power, partial repay long-term bank loans and bear the expenses of the IPO process.
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