The bidding for eligible investors (EIs) to discover the cut-off price of shares of Energypac Power Generation Ltd will commence from September 21.
The power generation company's share bidding through electronic subscription system (ESS) of the exchanges will be continued until 5:00pm on September 24, according to an official disclosure on Sunday.
The valuation report submission period for eligible investors through electronic subscription system will start at 10:30am on September 27 and continue till 10:30am on September 29, 2020 (round the clock).
Only the eligible investors can participate to explore the cut-off price of the company's shares under the electronic bidding process.
Each eligible investor who intends to participate in the electronic bidding for the Energypac Power shares shall maintain a minimum investment of Tk 10 million in listed securities as on the end of September 13 as per the Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015.
The minimum tick size (minimum bidding value) for bidding shall be Tk 5.0 million which is accordance with the BSEC consent letter to Energypac Power dated August 16, according to the disclosure.
The stock market regulator allowed Energypac Power to explore its cut-off price on August 6 - a requirement for going public under the book building method.
As per the regulatory approval, the power generation company will raise a capital worth Tk 1.50 billion from the capital market to expand the LPG business and repay bank loans.
Book building is a process through which an issuer attempts to determine the price to offer for its security based on demand from eligible institutional investors.
The eligible investors will get 50 per cent shares at the cut-off price which will be set through electronic bidding.
The remaining 50 per cent shares will be opened to the IPO participants, including general investors and non-resident Bangladeshis, at a 10 per cent discount on the cut-off price, according to the book-building method.
Apart from LPG business expansion and loan repayment, the company's IPO proceeds will be used to bear the cost of public offering process.
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