United Power leads turnover on debut

FE Report | Published: April 06, 2015 00:00:00 | Updated: November 30, 2026 06:01:00

United Power Generation & Distribution Company Ltd (UPGDCL) Sunday made a flying trade debut on the bourses by becoming top turnover and gainer of the day.
Each share of the company closed at Tk 134.6 on the Dhaka Stock Exchange (DSE), registering an increase of 86.94 per cent from its offer price of Tk 72.
The company’s share traded at between Tk 139.9 and Tk 98 on the premier bourse. Some 6.98 million shares worth Tk 791.69 million were exchanged on the trading floor, which accounted for 25.40 per cent of the day’s total turnover of Tk 3.11 billion.
At the Chittagong Stock Exchange (CSE), each share of the company was traded between Tk 139.9 and Tk 100.5 and closed at Tk 133.1, gaining 84.86 per cent from its issue price of Tk 72.
The company also dominated the top turnover chart on the DSE and CSE with shares worth Tk 791.69 million and Tk 154.70 million changing hands respectively.
An analyst said any newly-listed securities are considered to be an “instrument” for short-term speculation, and many investors want to bet on the shares for short-term gains. “So, it created hype among the investors on the first day of trading,” he said.
United Power, which received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) in October last year, floated 33 million ordinary shares ordinary shares at an offer price of Tk 72, including a premium of Tk 62 for each ten taka share under the book building method. The company raised a fund worth above Tk 2.37 billion.
The IPO proceeds will be used to repay the company’s long-term debt and meet the demand for working capital, according to the company’s IPO prospectus.
United Power is the first company which came under the modified book-building method. It is the 18th listed company in the fuel and power sector on the DSE that accounts for 12.43 per cent of the total market capitalisation.
The company has reported net profit Tk 1,757.84 million for the nine months January to September-2014 against Tk 1,344.50 million in the same period last year. Pre-IPO EPS is Tk 5.92 and Post-IPO EPS is Tk 5.33.
The company’s authorised capital Tk 8.0 billion and paid-up capital Tk 3.20 billion, according to DSE website information.
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